Lakeland Industries 2026 Q3 Earnings Sharp Net Loss Amid Revenue Growth

Lakeland Industries (LAKE) reported mixed Q3 2026 results, posting a 4.0% revenue increase to $47.59 million but swinging to a $1.64-per-share loss, a 16,500% decline from the prior year. The company withdrew full-year guidance and suspended its quarterly dividend due to margin pressures from tariffs, inflation, and supply chain costs.

Revenue

Lakeland’s total revenue rose 4.0% year-over-year to $47.59 million, driven by a 31% surge in Fire Services to $25.30 million. Disposables and Chemical segments contributed $10.90 million and $5 million, respectively, while High Visibility and High Performance Wear added $1.50 million and $2.40 million. Wovens and Gloves segments reported $2.20 million and $300,000, aligning with consolidated external sales of $47.60 million.

Earnings/Net Income

The company swung to a net loss of $15.96 million, or $1.64 per share, compared to a $86,000 profit in Q3 2025. This reflects a 18,652.3% deterioration in net income and a 16,500% negative change in EPS, underscoring severe margin compression from cost inflation and operational challenges.

Post-Earnings Price Action Review

The strategy of buying Lakeland shares after a revenue increase quarter-over-quarter and holding for 30 days yielded a 6.74% CAGR, underperforming the market by 46.29%. Despite a maximum drawdown of 0.00% and a Sharpe ratio of 0.14 indicating low risk, the approach delivered modest returns.

CEO Commentary

CEO Jim Jenkins attributed the EBITDA shortfall to declining revenue and gross margins driven by tariffs, inflation, and supply chain costs. He highlighted strategic acquisitions of California PPE and Arizona PPE, adding $5 million in annual recurring revenue, and a $5.6 million Hong Kong contract. Jenkins emphasized a shift to a “disciplined operating model” focused on execution and cash generation, while expressing confidence in long-term fundamentals like a $178 million tender pipeline.

Guidance

Lakeland withdrew its full-year guidance, citing forecasting inaccuracies and macroeconomic headwinds. The company now targets high single-digit revenue growth over the next three quarters, with adjusted EBITDA margins of 10%-12% in Q4 2026 and 15%-17% over three years via cost discipline. Capital expenditures for FY26 are projected at ~$1.2 million, with inventory optimization and ERP system rollouts prioritized.

Additional News

Lakeland completed strategic acquisitions of California PPE and Arizona PPE, expanding into U.S. PPE decontamination and rental markets. The CEO announced a $5.6 million Hong Kong Fire Services contract and a $6.1 million warehouse sale/leaseback, generating a $4.3 million gain. Additionally, the board suspended its quarterly $0.03-per-share dividend to focus on operational efficiencies and debt reduction.