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By Dhirendra Tripathi
Investing.com – Lakeland Industries (NASDAQ:LAKE) stock fell more than 7% in Thursday’s premarket trading a day after the company reported weaker than expected quarterly results.
The maker of personal protective equipment saw Covid-related demand tapering off as the pandemic came off its peak globally, with the share of revenues in net sales attributable to Covid almost halving to 13% in the quarter ended April 30 from 25% in the same quarter of the last fiscal year.
Lakeland President and Chief Executive Officer Charles D. Roberson warned supply now exceeds demand in the protective clothing market. Inventory levels throughout the supply chain have gone up, he said.
“In Q1FY21 we also saw a significant decline in our direct container sales which further reinforces this belief,” Roberson said.
Lakeland’s net sales fell by a quarter to $34.1 million, and diluted EPS fell to 57 cents from $1.07 in the first quarter of the last fiscal year.