Lakeland Industries Inc (LAKE) Reports Growth in Net Sales and Net Income in Fiscal 2024 Third ...
Net sales increased by 11.6% to $31.7 million compared to the same quarter last year.
Gross margin reported at 42.2%, with a slight decrease from the previous year's 43.3%.
Net income rose to $2.6 million, marking a significant increase from $1.4 million in the prior year.
Adjusted EBITDA grew to $3.3 million, maintaining a margin of 10.4% despite foreign currency exchange impacts.
On December 6, 2023, Lakeland Industries Inc (NASDAQ:LAKE) released its 8-K filing, announcing its financial results for the fiscal 2024 third quarter ended October 31, 2023. The company, a leading global manufacturer of protective clothing, reported an 11.6% increase in net sales year-over-year, reaching $31.7 million. Despite a slight dip in gross margin from 43.3% to 42.2%, the company's net income saw a substantial rise to $2.6 million, or $0.35 per basic and $0.34 per diluted share, compared to $1.4 million, or $0.19 per basic and diluted share, in the same quarter of the previous year.
Financial Performance Highlights
Lakeland Industries Inc (NASDAQ:LAKE) experienced robust sales and profitability growth, with net sales climbing to $31.7 million due to increased demand in strategic product categories. The company's focus on high-value products and market diversification, particularly in the fire service and industrial product lines, contributed to this growth. However, sales were somewhat offset by declines in disposable products, especially in Asia, and chemical product lines.
The gross profit for the quarter was $13.4 million, an 8.9% increase from the previous year, although the gross margin percentage saw a slight decrease. Operating profit improved significantly to $3.6 million, up from $2.2 million, driven by higher sales and reduced operating expenses, including a reduction in the accrual related to the Eagle acquisition.
Strategic Developments and Management Commentary
Executive Chairman Jim Jenkins highlighted the company's strategic investments and operational optimizations, which have bolstered results despite challenges such as weakness in China. The acquisition of Pacific Helmets NZ, Ltd, which occurred after the quarter's end, is expected to enhance Lakeland's fire service offerings and contribute to its strategic growth.
Lakeland delivered solid third-quarter results and continued to execute on the Companys growth strategy, highlighted by investments into the Companys high growth products and markets, the build-out of Lakelands premier global fire brand, as well as further optimization of our operations and sales channels, said Jim Jenkins, Executive Chairman of Lakeland Industries.
CFO Roger Shannon emphasized the company's strong cash flow generation, which has fortified Lakeland's financial position and supports the pursuit of growth opportunities.
Our positive performance further strengthens the Companys financial position, particularly our robust balance sheet and cash position, which we believe will allow us to continue pursuing both organic and inorganic growth opportunities, added Roger Shannon, Lakelands Chief Financial Officer.
Looking Forward
Lakeland Industries Inc (NASDAQ:LAKE) remains committed to its strategic acquisition pipeline and is focused on organic growth for the remainder of the fiscal year. Despite economic headwinds and currency fluctuations, the company is optimistic about future opportunities.
The company did not repurchase any common stock during the fiscal 2024 third quarter, and a quarterly cash dividend of $0.03 per share was paid in August 2023. Lakeland will host a conference call and live webcast to discuss the financial results and provide further insights into its performance and strategy.
For detailed financial tables and a reconciliation of GAAP to non-GAAP financial measures, please refer to the original 8-K filing.
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Explore the complete 8-K earnings release (here) from Lakeland Industries Inc for further details.
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