Lakeland Industries to Close Facilities, Aim for $4M in Annual Savings

Lakeland Industries (LAKE) plans to close its warehouse in Hull, England, and manufacturing facility in Quitman, Arkansas, to boost efficiency and lower expenses. The closures are expected to lead to annual savings of approximately $1 million for the remainder of fiscal year 2026. The company aims to retain key staff from the Hull site and assimilate Quitman's production into other facilities. Analysts forecast an average target price of $25.00, implying an upside of 78.06% from the current price of $14.04.

Lakeland Industries, Inc. (NASDAQ: LAKE), a leading global manufacturer of protective clothing and apparel for industry, healthcare, and first responders, has announced the planned closure of its warehouse facility in Hull, England and its Veridian manufacturing facility in Quitman, Arkansas. These closures are part of a broader operational consolidation strategy aimed at enhancing efficiency and reducing costs.

The closures are expected to generate annual savings of approximately $1 million for the remainder of fiscal year 2026, contributing to the company's ongoing efforts to streamline global operations and improve profitability. In addition to these closures, Lakeland has identified and is executing further initiatives expected to yield an additional $3 million in annualized savings, with the benefits anticipated to materialize in the second half of fiscal 2026.

"We want to express our deep gratitude to the dedicated teams in both Hull and Quitman," said Jim Jenkins, CEO and Executive Chairman of Lakeland Industries. "Their hard work and commitment have been instrumental to Lakeland’s and Veridian’s success over the years. While these decisions are difficult, they are necessary to align with our strategic initiatives focused on operational efficiency, regional consolidation, and long-term growth."

Lakeland remains committed to supporting affected employees through these transitions and to maintaining uninterrupted service to its global customer base. The Company will retain key non-warehouse staff from the Hull facility to continue supporting Lakeland’s industrial operations in the UK and will consolidate production from Quitman into other Lakeland and Veridian facilities.

As part of its long-term strategy, Lakeland is focused on driving sales growth, process improvements, and efficiencies across its business. Over the next 12 to 24 months, the company will continue to consolidate warehousing, logistics, and manufacturing operations globally in support of a more agile and cost-effective Lakeland. In parallel, Lakeland is rolling out a global ERP system and implementing Lean Six Sigma initiatives designed to deliver greater planning accuracy, enhanced forecasting capabilities, and improved operational intelligence.

Analysts forecast an average target price of $25.00 for Lakeland Industries stock, implying an upside of 78.06% from the current price of $14.04.

References:
[1] https://www.nasdaq.com/press-release/lakeland-fire-safety-announces-closure-hull-uk-and-quitman-arkansas-facilities-part
[2] https://www.nasdaq.com/articles/lakeland-industries-announces-4-million-annual-cost-reduction-plan-including-closures-uk