Lakeland Industries reported second-quarter net sales of $50.1 million, up 5.7% sequentially on a 12% sequential increase in Fire, with Fire reaching approximately 52% of revenue versus 49% in the prior quarter. Gross margin was 37%, or 34% excluding a $1.4 million net tariff benefit, still a 280 basis point sequential improvement, while the company posted a net loss of $4.9 million, or $0.50 per basic and diluted share, including a roughly $3.2 million non-cash goodwill impairment tied to LHD Germany. Chief Executive James Jenkins said the company secured multiple tender and contract awards across 9 countries, including notification of an intended award under the U.K. National Fire Chiefs Council National Firefighter PPE Framework, a 7-year program with a total potential value of up to GBP 220 million across all awarded suppliers. Chief Financial Officer J. Swinea said first-half operating cash flow was $5.4 million, a $15.1 million year-over-year improvement, and that the quarter ended with cash of $17.9 million and total debt of $28.7 million. Management said it expects the timing of certain fire orders to shift into the fourth quarter and anticipates meaningful portfolio and geographic changes in the next 6 months, while Jenkins flagged foreign exchange as a $1.3 million headwind.
Lakeland Industries IncPosted a $4.9 million net loss including a ~$3.2 million non-cash goodwill impairment tied to LHD Germany.
The ~$3.2 million non-cash goodwill impairment is tied to LHD Germany.
