Industrial Clothing Manufacturer Lakeland Beats On Q3 Despite China Headwinds & Forex Fluctuations: Details

Zinger Key Points
  • The company said it saw healthy demand for its higher-value, strategic product categories.
  • The company acquired Pacific Helmets in late November, expanding fire service product offerings.

Lakeland Industries Inc LAKE reported third-quarter FY24 sales growth of 11.6% year-on-year to $31.68 million, beating the analyst consensus estimate of $30.90 million.

Sales of its fire service and industrial product lines increased by $6.1 million, reflecting continued market share expansion in the first responder markets and ongoing strength in oil and gas turnaround activity and utilities markets. 

Meanwhile, sales were negatively impacted by declines in disposable products, particularly in Asia.

Gross profit climbed 8.9% Y/Y to $13.4 million, with the margin contracting 110 basis points to 42.2%.

The operating margin was 11.4%, and operating income for the quarter increased 62.9% to $3.6 million.

Adjusted EBITDA of $3.3 million increased over 10% Y/Y.

EPS of $0.34 beat the consensus estimate of $0.27.

Lakeland held $26.4 million in cash and equivalents as of October 31, 2023.

"During the quarter, we saw healthy demand for our higher-value, strategic product categories, which represent a growing proportion of the Company's revenue profile," said Executive Chairman Jim Jenkins.

"Additionally, the Company's geographic and end-market diversity helped bolster our results despite ongoing weakness in China."

Price Action: LAKE shares closed higher by 1.72% at $14.80 on Wednesday.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsEquitiesNewsMarketsGeneralBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!