• Revenue: Q4 revenue increased by $15.4 million or 49.3% to $46.6 million; full-year revenue rose by $42.5 million or 34.1% to $167.2 million.
• Gross Margin: Q4 gross margin increased to 40.1% from 35.9% in the previous year; full-year gross margin remained at 41.1%.
• Net Loss: Q4 net loss was $18.4 million or negative $2.42 per diluted share; full-year net loss was $18.1 million or negative $2.43 per diluted share.
• Operating Expenses: Q4 operating expenses increased by $4.3 million or 29.7% to $18.8 million; full-year operating expenses rose by $22.2 million or 49.1% to $67.4 million.
• Adjusted EBITDA: Q4 adjusted EBITDA, excluding FX, was $6.1 million; full-year adjusted EBITDA was $17.4 million, a 10% increase from the previous year.
• Cash and Cash Equivalents: $17.5 million as of January 31, 2025, down from $25.2 million the previous year.
• Inventory: Increased by $14.2 million to $82.7 million as of January 31, 2025.
• Fire Services Revenue: Increased by $36.5 million or 137.7% year-over-year.
• International Sales: Accounted for 64% of total revenues for the fiscal year 2025.

• Warning! GuruFocus has detected 4 Warning Signs with LAKE.

Release Date: April 09, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Lakeland Industries Inc (NASDAQ:LAKE) reported a significant revenue growth of 49.3% in the fourth quarter of fiscal 2025 compared to the same period in fiscal 2024.
• The company completed four strategic acquisitions over the past 1.5 years, enhancing its competitive advantage in the global fire turnout gear and industrial PPE markets.
• Lakeland Industries Inc (NASDAQ:LAKE) successfully closed an oversubscribed $46 million public equity offering, which improved its balance sheet and is expected to save approximately $2.5 million annually in cash interest.
• The company has implemented a company-wide Lean Six Sigma project to enhance operational efficiency and is modernizing its ERP systems to consolidate its IT control environment.
• Lakeland Industries Inc (NASDAQ:LAKE) has a strong global presence, operating from 18 locations in 14 countries, with sales representatives in 23 countries outside the US and product sales in more than 50 countries.

Negative Points

• Lakeland Industries Inc (NASDAQ:LAKE) reported a net loss of $18.4 million for the fourth quarter of fiscal 2025, primarily due to a $10.5 million goodwill impairment and a $7.6 million write-off of its investment in Bodytrak.
• Operating expenses increased significantly by 29.7% in the fourth quarter of fiscal 2025 due to inorganic growth, acquisition expenses, and increased SG&A operating expenses.
• The company faced challenges with tariff pressures and broader economic uncertainties, which could impact its operations and profitability.
• Lakeland Industries Inc (NASDAQ:LAKE) experienced a decrease in cash and cash equivalents from $25.2 million in January 2024 to $17.5 million in January 2025, reflecting the impact of its acquisition strategy.
• The company is dealing with a backlog in orders, particularly with a large boot order from Jolly, which was delayed and impacted its financial performance.

Q & A Highlights

Q: Can you provide more details on the guidance given the recent tariff developments? A: James Jenkins, Executive Chairman and CEO, stated that the guidance remains unchanged despite recent events. The company is prepared for potential tariff increases and has mitigation strategies in place. However, if tariffs increase significantly, revenue might rise, but margins could be affected.

Q: What are the plans for Bodytrak following its insolvency? A: James Jenkins explained that Lakeland has acquired Bodytrak's assets and plans to monetize them through strategic sales and potential patent enforcement. The company aims to leverage its financial strength and relationships to reposition Bodytrak's offerings.

Q: How is Lakeland addressing the challenges posed by tariffs, particularly in manufacturing? A: James Jenkins mentioned that Lakeland is exploring options such as shifting production to Mexico, which could be tariff-free under USMCA. The company is also considering India as an alternative manufacturing location if tariffs on Vietnam increase significantly.

Q: Can you elaborate on the operational optimization programs, particularly regarding Pacific Helmets? A: James Jenkins noted that the Lean Six Sigma program will be implemented company-wide to improve efficiencies. The focus is on aligning business processes with ERP systems to enhance operational performance across all acquisitions.

Q: What is the status of the Jolly boot order, and how does it impact financials? A: Roger Shannon, CFO, confirmed that the EUR3 million Jolly boot order is ready to ship, pending customer inspections. The delay affected Q4 results, but the order is expected to be fulfilled in the first half of fiscal 2026, aligning with revenue projections.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.