10-Q

Large accelerated filer

Accelerated filer

Nonaccelerated filer

Smaller reporting company

Emerging growth company

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM

10-Q

(Mark one)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April

30, 2025

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from

OMMISSION

ILE

UMBER

0-15535

LAKELAND INDUSTRIES, INC.

(Exact name of Registrant as specified in its charter)


Delaware		13-3115216
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

1525 Perimeter Parkway, Suite 325 Huntsville, AL		35806
(Address of Principal Executive Offices)		(Zip Code)

(Registrant’s telephone number, including area code) (256

)

350-3873

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	LAKE	NASDAQ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

Yes

☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation

S-T

(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a

non-accelerated

filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule

12b-2

of the Exchange Act:

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule

12b-2

of the Exchange Act) Yes

☐

No ☒

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.


Class		Outstanding at May 30, 2025
Common Stock, $0.01 par value per share		9,514,599 Shares

LAKELAND INDUSTRIES, INC.

AND SUBSIDIARIES

FORM 10-Q

The following information of the Registrant and its subsidiaries is submitted herewith:

PART I - FINANCIAL INFORMATION:


		Page
Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Statements of Operations Three Months Ended April 30, 2025 and 2024		3
	Condensed Consolidated Statements of Comprehensive (Loss) Income Three Months Ended April 30, 2025 and 2024		4
	Condensed Consolidated Balance Sheets April 30, 2025 and January 31, 2025		5
	Condensed Consolidated Statements of Stockholders’ Equity Three Months Ended April 30, 2025 and 2024		6
	Condensed Consolidated Statements of Cash Flows Three Months Ended April 30, 2025 and 2024		7
	Notes to Condensed Consolidated Financial Statements		8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		29
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		35
Item 4.	Controls and Procedures		35

PART II - OTHER INFORMATION:

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		37
Item 5	Other Information		37
Item 6.	Exhibits		38
	Signature Pages		39

LAKELAND INDUSTRIES, INC.

AND SUBSIDIARIES

PART I FINANCIAL INFORMATION

Item 1. Financial Statements

LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

($000’s except for share and per share information)


	Three Months Ended April 30,
	2025			2024
Net sales	$	46,746		$	36,309
Cost of goods sold		31,102			20,125

Gross profit		15,644			16,184
Operating expenses		20,278			13,982

Operating (loss) income		(4,634	)		2,202
Other income, net		106			11
Interest expense		(583	)		(172	)

(Loss) income before taxes		(5,111	)		2,041
Income tax (benefit) expense		(1,198	)		388

Net (loss) income	($	3,913	)	$	1,653

Net (loss) income per common share:
Basic	($	0.41	)	$	0.22

Diluted	($	0.41	)	$	0.22

Weighted average common shares outstanding:
Basic		9,498,604			7,364,757
Diluted		9,498,604			7,582,449

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Table of Contents

LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (L

OSS

) INCOME

(UNAUDITED)

($000’s)


	Three Months Ended April 30,
	2025			2024
Net (loss) income	( $	3,913	)	$	1,653
Other comprehensive income (loss):
Foreign currency translation adjustments		751			158

Comprehensive (loss) income	( $	3,162	)	$	1,811

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Table of Contents

LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(000’s except for share information)


	April 30,			January 31,
	2025			2025
ASSETS
Current assets
Cash and cash equivalents	$	18,618		$	17,476
Accounts receivable, net of allowance for doubtful accounts of $1,291 and $1,237 at April 30, 2025 and January 31, 202 5 , respectively		27,629			27,607
Inventories		85,823			82,739
Prepaid VAT and other taxes		2,600			2,598
Income tax receivable and other current assets		6,036			6,111

Total current assets		140,706			136,531
Property and equipment, net		14,612			13,948
Operating leases right-of-use assets		13,563			13,917
Deferred tax assets		5,637			6,270
Other assets		380			122
Goodwill		17,082			16,240
Intangible assets, net		26,148			25,503

Total assets	$	218,128		$	212,531

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	14,650		$	15,742
Accrued compensation and benefits		5,116			4,501
Other accrued expenses		9,973			8,130
Income tax payable		1,288			1,993
Current portion of loans payable		1,632			939
Current portion of operating lease liabilities		3,608			3,602

Total current liabilities		36,267			34,907
Deferred income taxes		3,505			3,891
Loans payable – long term		24,651			16,426
Long-term portion of operating lease liabilities		10,323			10,681

Total liabilities		74,746			65,905

Commitments and contingencies (Note 11)
Stockholders’ equity
Preferred stock, $0.01 par; authorized 1,500,000 shares (none issued)		—			—
Common stock, $0.01 par; authorized 20,000,000 shares Issued 10,872,551 and 10,856,812; outstanding 9,514,343 and 9,498,604 at April 30, 2025 and January 31, 2025, respectively		109			109
Treasury stock, at cost; 1,358,208 shares at April 30, 2025 and January 31, 2025, respectively		(19,979	)		(19,979	)
Additional paid-in capital		123,339			123,136
Retained earnings		46,122			50,320
Accumulated other comprehensive loss		(6,209	)		(6,960	)

Total stockholders’ equity		143,382			146,626

Total liabilities and stockholders’ equity	$	218,128		$	212,531

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Table of Contents

LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(UNAUDITED)

(000’s except for share information)


											Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Loss			Total

	Common Stock				Treasury Stock
	Shares		Amount		Shares			Amount
Balance, January 31, 2024		8,722,965	$	87		(1,358,208	)	$	(19,979	)	$	79,420		$	69,282		$	(5,360	)	$	123,450
Net income		—		—		—			—			—			1,653			—			1,653
Other comprehensive loss		—		—		—			—			—			—			158			158
Dividends		—		—		—			—			—			(221	)		—			(221	)
Stock-based compensation:
Restricted stock issued		13,058		—		—			—			—			—			—			—
Restricted stock plan		—		—		—			—			198			—			—			198
Return of shares in lieu of payroll withholding		—		—		—			—			(129	)		—			—			(129	)

Balance, April 30, 2024		8,736,023	$	87		(1,358,208	)	$	(19,979	)	$	79,489		$	70,714		$	(5,202	)	$	125,109

Balance, January 31, 2025		10,856,812	$	109		(1,358,208	)	$	(19,979	)	$	123,136		$	50,320		$	(6,960	)	$	146,626
Net (loss)		—		—		—			—			—			(3,913	)		—			(3,913	)
Other comprehensive loss		—		—		—			—			—			—			751			751
Dividends		—		—		—			—			—			(285	)		—			(285	)
Stock-based compensation:
Restricted stock issued		15,739		—		—			—			—			—			—			—
Restricted stock plan		—		—		—			—			329			—			—			329
Return of shares in lieu of payroll withholding		—		—		—			—			(126	)		—			—			(126	)

Balance, April 30, 2025		10,872,551	$	109		(1,358,208	)	$	(19,979	)	$	123,339		$	46,122		$	(6,209	)	$	143,382

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Table of Contents

LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

($000’

)


	Three Months Ended April 30,
	2025			2024

Cash flows from operating activities:
Net (loss) income	( $	3,913	)	$	1,653
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities
Deferred income taxes		243			77
Depreciation and amortization		1,138			647
Amortization of step-up in inventory basis		447			—
Stock based and restricted stock compensation		329			198
Equity in loss of equity investment		—			101
Change in fair value of earnout consideration		—			(711	)
(Increase) decrease in operating assets, net of effect of business acquisition
Accounts receivable		160			(404	)
Inventories		(3,505	)		433
Prepaid VAT and other taxes		(2	)		541
Other current assets		(160	)		(2,255	)
Increase (decrease) in operating liabilities, net of effect of business acquisition
Accounts payable		(1,117	)		861
Accrued expenses and other liabilities		1,708			(852	)
Operating lease liabilities		(169	)		4

Net cash (used in) provided by operating activities		(4,841	)		293

Cash flows from investing activities:
Purchases of property and equipment		(1,209	)		(466	)
Acquisitions, net of cash acquired		—			(8,141	)
Investments in convertible debt instruments		—			(639	)

Net cash (used in) investing activities:		(1,209	)		(9,246	)

Cash flows from financing activities:
Term loan borrowings		2,555			—
Term loan repayments		(237	)		(364	)
Credit line - borrowings		6,600			12,300
Dividends paid		(285	)		(221	)
Shares returned to pay employee taxes under restricted stock program		(126	)		(129	)

Net cash provided by financing activities		8,507			11,586

Effect of exchange rate changes on cash and cash equivalents		(1,315	)		510

Net increase in cash and cash equivalents		1,142			3,143
Cash and cash equivalents at beginning of period		17,476			25,222

Cash and cash equivalents at end of period	$	18,618		$	28,365

Supplemental disclosure of cash flow information:
Cash paid for interest	$	581		$	174

Cash paid for taxes	$	643		$	397

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Table of Contents

LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Business

Lakeland Industries, Inc. and Subsidiaries, doing business as “Lakeland Fire + Safety” (“Lakeland,” the “Company,” “we,” “our” or “us”), manufacture and sell a comprehensive line of fire services and industrial protective clothing and accessories for the industrial and first responder markets. Our products are sold globally by our

in-house

sales teams, our customer service group, and authorized independent sales representatives to a strategic global network of selective fire safety and industrial distributors and wholesale partners. Our authorized distributors supply end users, such as integrated oil, chemical/petrochemical, automobile, transportation, steel, glass, construction, smelting, cleanroom, janitorial, pharmaceutical, and high technology electronics manufacturers, as well as scientific, medical laboratories and the utilities industry. In addition, we supply federal, state and local governmental agencies and departments, including fire and law enforcement, airport crash rescue units, the Department of Defense, the Department of Homeland Security and the Centers for Disease Control. Internationally, we sell to a mix of end-users directly and to industrial distributors, depending on the particular country and market. In addition to the United States, sales are made into more than 50 foreign countries, the majority of which were into China, the European Economic Community (“EEC”), Canada, Chile, Argentina, Russia, Kazakhstan, Colombia, Mexico, Ecuador, India, Uruguay, Middle East, Southeast Asia, Australia, Hong Kong and New Zealand.

2.	Basis of Presentation

The condensed consolidated financial statements of the Company are unaudited. These condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, that management considers necessary to fairly state the Company’s results. Intercompany accounts and transactions have been eliminated. The results reported in these condensed consolidated financial statements are not necessarily indicative of the results that may be expected for the entire fiscal year ending January 31, 2026, or for any future period. The January 31, 2025, Condensed Consolidated Balance Sheet data was derived from the audited Consolidated Balance Sheet but does not include all disclosures required by accounting principles generally accepted in the United States of America (U.S. GAAP). The accompanying condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto as of and for the years ended January 31, 2025 and 2024, included in our most recent annual report

on Form 10-K

filed on April 17, 2025.

In this Form

10-Q,

(a) “FY” means fiscal year; thus, for example, FY26 refers to the fiscal year ending January 31, 2026, (b) “Q” refers to quarter; thus, for example, Q1 FY26 refers to the first quarter of the fiscal year ending January 31, 2026, (c) “Balance Sheet” refers to the unaudited condensed consolidated balance sheet, and (d) “Statement of Operations” refers to the unaudited condensed consolidated statement of operations.

Recent Accounting Pronouncements

The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued.

Segment Reporting

The Company adopted ASU

No. 2023-07

(“ASU

2023-07”),

Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures

for the year ended January 31, 2025 and applied it retrospectively for the prior period presented. See “Note 12. Segment Reporting.”

SEC Form 10-Q filed by Lakeland Industries Inc.