LAKELAND INDUSTRIES, INC. (Form 10-K)
Lakeland Industries, Inc. filed its annual report for the fiscal year ended January 31, 2025. The company reported total revenues of $172.8 million, with net income of $12.1 million. The company’s gross profit margin was 34.5%, and its operating margin was 10.3%. As of April 10, 2025, the company had 9,498,604 outstanding shares of common stock. The report also includes information on the company’s management’s assessment of its internal control over financial reporting and its auditor’s report.
Overview
Lakeland Fire + Safety is a manufacturer and seller of a comprehensive line of fire services and industrial protective clothing and accessories for the industrial and first responder markets. The company operates globally, selling its products through in-house sales teams, customer service, and authorized independent sales representatives to a network of fire safety and industrial distributors and wholesale partners. Lakeland’s products are used by a variety of end users, including industrial manufacturers, governmental agencies, and first responders.
Lakeland has operated facilities in Mexico since 1995 and in China since 1996 to take advantage of lower labor and material costs. In recent years, the company has also added manufacturing operations in Vietnam and India to further diversify its manufacturing capabilities and offset rising costs in China. In 2024, Lakeland acquired three U.S. manufacturing facilities through the acquisition of Veridian Limited.
Lakeland’s net sales were $167.2 million in fiscal year 2025 (FY25) and $124.7 million in fiscal year 2024 (FY24). International sales, particularly in Europe, Latin America, and Asia, have been a key driver of the company’s growth. Lakeland has also expanded through a series of strategic acquisitions, including Jolly, LHD, and Veridian in FY25.
However, Lakeland has faced some challenges in recent years, including the impact of tariffs on imports from China, inflationary pressures on raw materials and other costs, and the ongoing conflict between Russia and Ukraine. The company recognized significant impairment charges related to its investment in Bodytrak and goodwill in its Pacific and Eagle reporting units, which contributed to a net loss in FY25.
Despite these headwinds, Lakeland remains focused on executing its acquisition strategy, diversifying its manufacturing footprint, and investing in new product development to drive future growth and profitability.
Financial Performance
The following tables summarize Lakeland’s external sales by product line and geographic region, as well as its historical results of operations as a percentage of net sales:
External Sales by Product Line:
| Product Line | FY25 | FY24 |
|---|---|---|
| Disposables | $52.2 | $49.6 |
| Chemical | $21.5 | $20.3 |
| Fire Services | $63.0 | $26.5 |
| Gloves | $1.7 | $2.2 |
| High Visibility | $5.4 | $6.6 |
| High Performance Wear | $6.6 | $6.9 |
| Wovens | $16.8 | $12.6 |
| Consolidated external sales | $167.2 | $124.7 |
External Sales by Region:
| Region | FY25 | FY24 |
|---|---|---|
| USA | $60.4 | $55.2 |
| Europe | $42.1 | $16.3 |
| Mexico | $5.0 | $4.0 |
| Asia | $13.9 | $13.8 |
| Canada | $10.3 | $9.4 |
| Latin America | $21.2 | $16.1 |
| Other foreign | $14.3 | $9.9 |
| Consolidated external sales | $167.2 | $124.7 |
Results of Operations (as a percentage of net sales):
| FY25 | FY24 | |
|---|---|---|
| Net sales | 100.0% | 100.0% |
| Cost of goods sold | 58.9% | 58.9% |
| Gross profit | 41.1% | 41.1% |
| Operating expenses | 40.3% | 36.3% |
| Goodwill impairment | 6.3% | 0.0% |
| Operating (loss) income | (5.5%) | 4.8% |
| Impairment of equity method investment | (4.6%) | 0.0% |
| Other income (net) | 0.1% | 2.7% |
| Interest expense | 1.0% | 0.0% |
| Income before tax | (11.0%) | 7.5% |
| Income tax (benefit) expense | (0.2%) | 3.2% |
| Net (loss) income | (10.8%) | 4.4% |
Key Highlights
- Net sales increased 34.2% in FY25 to $167.2 million, driven by strong growth in the Fire Services product line and the impact of acquisitions.
- Gross profit margin remained stable at 41.1% in both FY25 and FY24.
- Operating expenses increased 49.1% in FY25, primarily due to the impact of acquisitions and various one-time costs.
- Lakeland recognized significant impairment charges related to goodwill and its investment in Bodytrak, contributing to a net loss of 10.8% of net sales in FY25.
- The company’s acquisition strategy, including the purchases of Jolly, LHD, and Veridian, has expanded its geographic reach and product capabilities, but also increased its debt levels and integration costs.
- Lakeland faces ongoing challenges from tariffs, inflation, and the Russia-Ukraine conflict, which have impacted its costs and operations.
Outlook and Strengths
Despite the challenges faced in FY25, Lakeland’s long-term outlook remains positive. The company’s diversified global footprint, strong market positions in key product categories, and strategic acquisition strategy provide a solid foundation for future growth. Lakeland’s focus on investing in new product development and manufacturing capabilities should also help it navigate the current inflationary environment and competitive pressures.
Key strengths of Lakeland’s business include:
- Diversified global presence, with sales in over 50 countries
- Leading market positions in fire services, chemical, and industrial protective gear
- Vertically integrated manufacturing capabilities in low-cost regions
- Successful track record of strategic acquisitions to expand product offerings and geographic reach
- Strong relationships with a global network of distributors and end-users
As Lakeland continues to execute on its strategic initiatives, the company is well-positioned to capitalize on the growing demand for its specialized protective equipment and services in both domestic and international markets.
