By Katherine Hamilton

Lakeland Industries withdrew its full-year guidance, as more tariff costs and lower-margin business are pressuring margins.

The maker of personal protective equipment said Tuesday it was withdrawing its previously issued outlook for the current fiscal year and wouldn't provide financial guidance going forward.

Macroeconomic challenges, as well as problems within the business, are weighing on revenue, Chief Executive Jim Jenkins said. Those include tariffs, freight, raw material inflation and rising supply-chain costs.

Revenue in the fiscal third quarter was $47.6 million, missing analysts' estimate of $56.6 million.

Sales softness hit Lakeland across its portfolio in the U.S., Canada, Latin America and parts of Europe and Africa, Jenkins said. Revenue in Latin America was below expectations due to conditions related to political uncertainty, he said.

The company's acquired businesses also came in below management's expectations due to certification delays and material-flow issues, Jenkins said.

Lakeland's business mix has also shifted away from higher-margin categories, as costs, tariffs and labor squeeze margins.

"These challenges have affected our forecasting ability," Jenkins said.

To manage the challenges, Jenkins said Lakeland is reducing inventory to release working capital, as well as lower carrying costs and prioritizing liquidity and debt reduction. He emphasized that the challenges Lakeland is facing aren't structural demand problems.

The company swung to a loss in the quarter of $16 million, compared with a profit of $86,000 the year before.

Shares fell 14%, to $12.99, in after-hours trading.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

December 09, 2025 16:40 ET (21:40 GMT)

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