Lakeland Industries reports Q3 EPS ($1.64) vs. 1c last year

Reports Q3 revenue $47.59M vs. $45.76M. The company said, “Several macroeconomics factors, which are also affecting our peers, contributed to the quarter’s results, including tariffs, freight, raw material inflation and rising supply-chain costs that drove both revenue and gross margin shortfalls. For Lakeland, revenue softness was visible across our portfolio in the U.S., Canada, Latin America, and parts of EMEA. North America faced challenges with revenue down quarter over quarter and Latin America came in below our plan due to macro-economic conditions impacted by political uncertainty. Our acquired businesses also came in below our plan due to timing, certification delays, and material flow issues, rather than underlying demand. The revenue misses directly reduced gross profit dollars, removing the operating leverage we depend on to convert volume into earnings. While revenue has grown, margin pressure has driven a decline in adjusted EBITDA as freight, mix and tariffs weighed on results. Throughput and mix inefficiencies affected costs and labor, and our mix shifted away from higher-margin categories. In total, we believe that these are all correctable issues, not structural demand problems, and we are proactively working to address our challenges.”