Lakeland Industries Plunges 15.29% on Missed Earnings

On June 10, 2025, Lakeland Industries experienced a significant drop of 15.29% in pre-market trading.

Lakeland Industries reported a 29% increase in net sales for the first quarter of 2026, reaching a record $46.7 million. However, the company faced challenges with decreased gross margins and increased operating expenses, which led to a 4% decrease in gross profit to $15.6 million and an 84% drop in adjusted EBITDA excluding FX to $0.6 million. Despite the strong sales growth, the company's earnings missed estimates, with EPS at ($0.41) versus the $0.19 estimate and revenue falling short at $46.7 million versus the $48.85 million estimate. The company's revenue for the trailing 12 months ended April 30, 2025, was $177.6 million, an increase of $45.3 million or 34% versus the Q1 fiscal 2025 TTM revenue of $132 million.

These financial results indicate that while Lakeland Industries is experiencing strong sales growth, the company is facing challenges with profitability and operating expenses. The significant drop in pre-market trading on June 10, 2025, may be attributed to these financial challenges and the company's inability to meet earnings estimates. Investors will be closely watching Lakeland Industries' performance in the coming quarters to see if the company can address these challenges and improve its profitability.