Lakeland Industries Q2 net sales fall on industrial revenue decline despite fire products demand

Lakeland Industries

09/09/2026 21:13

Overview
US protective apparel maker's fiscal Q2 sales fell 4.5% yr/yr, missing analyst expectations
Adjusted EBITDA excluding FX more than doubled sequentially but declined yr/yr
Company saw margin improvement from favorable Fire Products mix and net tariff refund

Outlook
Company expects margin performance to continue improving in the second half of fiscal 2027
Lakeland Industries aims to convert demand and backlog into revenue and maintain expense discipline
Company anticipates a return to more consistent growth in the second half, with quarter-to-quarter variability

Result Drivers
FIRE PRODUCTS DEMAND - Revenue from Fire Products rose 2% yr/yr and 12% sequentially, with strong demand for turnout gear, helmets and hoods as customers transitioned to updated NFPA standards
FIRE SERVICES EXPANSION - Fire Services revenue increased 78% yr/yr as co expanded its service footprint with new and expanded locations
INDUSTRIAL REVENUE DECLINE - Industrial revenue fell 10.8% on a reported basis, but excluding divested product lines, increased about 3%

Company press release: ID:nGNX8k9nLr

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$50.10 mln
$51.36 mln (4 Analysts)
Q2 Loss Per Share
 
$0.50
 
Q2 Gross Profit
 
$18.54 mln
 
Q2 Operating Expenses
 
$20.63 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the apparel & accessories peer group is "buy"
Wall Street's median 12-month price target for Lakeland Industries Inc is $17.00, about 47.7% above its September 8 closing price of $11.51
The stock recently traded at 42 times the next 12-month earnings vs. a P/E of 69 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)