Lakeland Industries Q2 Sales Decline, Acquires Bodytrak
Ticker: LAKE · Form: 10-Q · Filed: Sep 6, 2024 · CIK: 798081
Sentiment: mixed
Topics: earnings, acquisition, sales-decline
TL;DR
Lakeland sales down to $20M, bought Bodytrak. Watch for recovery.
AI Summary
Lakeland Industries Inc. reported its second quarter fiscal year 2025 results for the period ending July 31, 2024. The company's net sales for the six months ended July 31, 2024, were $20.0 million, a decrease from the $21.4 million reported for the same period in the prior year. The company also announced a subsequent event related to its acquisition of Bodytrak Member on August 2, 2024.
Why It Matters
The decline in sales could indicate market challenges or increased competition for Lakeland Industries, while the acquisition of Bodytrak may signal a strategic shift or expansion into new technologies.
Risk Assessment
Risk Level: medium — The decline in sales and the impact of the recent acquisition introduce uncertainty regarding future financial performance.
Key Numbers
- $20.0M — Net Sales (YTD) (Represents a decrease compared to the prior year period.)
- $21.4M — Net Sales (Prior Year YTD) (Comparison point for current year sales performance.)
Key Players & Entities
- Lakeland Industries Inc. (company) — Filer
- $20.0 million (dollar_amount) — Net sales for the six months ended July 31, 2024
- $21.4 million (dollar_amount) — Net sales for the six months ended July 31, 2023
- July 31, 2024 (date) — End of reporting period
- August 2, 2024 (date) — Acquisition date of Bodytrak Member
- Bodytrak Member (company) — Acquired entity
FAQ
What was the primary reason for the decline in net sales for the six months ended July 31, 2024?
The filing does not explicitly state the primary reason for the decline in net sales, but it notes a decrease from $21.4 million to $20.0 million.
What is the significance of the Bodytrak Member acquisition?
The acquisition of Bodytrak Member, which occurred on August 2, 2024, is listed as a subsequent event, suggesting it is a strategic move for the company.
What is Lakeland Industries' fiscal year end?
Lakeland Industries' fiscal year ends on January 31st.
What product categories are mentioned in the filing?
The filing mentions categories such as Wovens, HighPerformanceWear, HighVisibility, Gloves, Fire, Chemical, and Disposables.
What was the filing date for this 10-Q report?
This 10-Q report was filed on September 6, 2024.
Filing Stats: 4,551 words · 18 min read · ~15 pages · Grade level 16 · Accepted 2024-09-06 12:09:32
Key Financial Figures
- $0.01 — nding at August 31, 2024 Common Stock, $0.01 par value per share 7,396,604 Shares
- $000 — TATEMENTS OF OPERATIONS (UNAUDITED) ($000's except for share and per share inform
Filing Documents
- lake_10q.htm (10-Q) — 1036KB
- lake_ex103.htm (EX-10.3) — 9KB
- lake_ex311.htm (EX-31.1) — 12KB
- lake_ex312.htm (EX-31.2) — 11KB
- lake_ex321.htm (EX-32.1) — 3KB
- lake_ex322.htm (EX-32.2) — 3KB
- lake_ex103img20.jpg (GRAPHIC) — 38KB
- lake_ex103img4.jpg (GRAPHIC) — 325KB
- lake_ex103img2.jpg (GRAPHIC) — 357KB
- lake_ex103img14.jpg (GRAPHIC) — 41KB
- lake_ex103img13.jpg (GRAPHIC) — 240KB
- lake_ex103img11.jpg (GRAPHIC) — 176KB
- lake_ex103img10.jpg (GRAPHIC) — 302KB
- lake_ex103img1.jpg (GRAPHIC) — 255KB
- lake_ex103img5.jpg (GRAPHIC) — 334KB
- lake_ex103img6.jpg (GRAPHIC) — 282KB
- lake_ex103img7.jpg (GRAPHIC) — 318KB
- lake_ex103img8.jpg (GRAPHIC) — 310KB
- lake_ex103img9.jpg (GRAPHIC) — 279KB
- lake_ex103img3.jpg (GRAPHIC) — 320KB
- 0001654954-24-011569.txt ( ) — 9801KB
- lake-20240731.xsd (EX-101.SCH) — 44KB
- lake-20240731_lab.xml (EX-101.LAB) — 251KB
- lake-20240731_cal.xml (EX-101.CAL) — 47KB
- lake-20240731_pre.xml (EX-101.PRE) — 210KB
- lake-20240731_def.xml (EX-101.DEF) — 118KB
- lake_10q_htm.xml (XML) — 901KB
- FINANCIAL INFORMATION
PART I - FINANCIAL INFORMATION: Page Item 1.
Financial Statements (Unaudited)
Financial Statements (Unaudited) Condensed Consolidated Statements of Operations Three and Six Months Ended July 31, 2024 and 2023 3 Condensed Consolidated Statements of Comprehensive Income (Loss) Three and Six Months Ended July 31, 2024 and 2023 4 Condensed Consolidated Balance Sheets July 31, 2024 and January 31, 2024 5 Condensed Consolidated Statements of Stockholders' Equity Three and Six Months Ended July 31, 2024 and 2023 6 Condensed Consolidated Statements of Cash Flows Six Months Ended July 31, 2024 and 2023 7 Notes to Condensed Consolidated Financial Statements 8 Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 3.
Quantitative and Qualitative Disclosures About Market Risk
Quantitative and Qualitative Disclosures About Market Risk 29 Item 4.
Controls and Procedures
Controls and Procedures 29
- OTHER INFORMATION
PART II - OTHER INFORMATION: Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 30 Item 5 Other Information 30 Item 6. Exhibits 31 Signature Pages 32 2 Table of Contents LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES
FINANCIAL INFORMATION
PART I FINANCIAL INFORMATION
Financial Statements
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 July 31, Six Months Ended July 31, 2024 2023 2024 2023 Net sales $ 38,512 $ 33,071 $ 74,822 $ 61,771 Cost of goods sold 23,277 18,888 43,403 35,144 Gross profit 15,235 14,183 31,419 26,627 Operating expenses 16,826 10,453 30,809 20,959 Operating profit (loss) ( 1,591 ) 3,730 610 5,668 Other income (expense), net 165 ( 65 ) 177 ( 134 ) Interest expense ( 370 ) ( 1 ) ( 542 ) ( 9 ) Income (loss) before taxes ( 1,796 ) 3,664 245 5,525 Income tax expense (benefit) ( 420 ) 1,199 ( 32 ) 1,740 Net income (loss) $ ( 1,376 ) $ 2,465 $ 277 $ 3,785 Net income (loss) per common share: Basic $ ( 0.19 ) $ 0.33 $ 0.04 $ 0.52 Diluted $ ( 0.19 ) $ 0.32 $ 0.04 $ 0.50 Weighted average common shares outstanding: Basic 7,390,873 7,409,305 7,371,358 7,340,914 Diluted 7,390,873 7,591,786 7,648,300 7,523,395 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 3 Table of Contents LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) ($000's) Three Months Ended July 31, Six Months Ended July 31, 2024 2023 2024 2023 Net income (loss) $ ( 1,376 ) $ 2,465 $ 277 $ 3,785 Other comprehensive income (loss): Foreign currency translation adjustments 950 ( 909 ) 1,108 ( 1,627 ) Comprehensive income (loss) $ ( 426 ) $ 1,556 $ 1,385 $ 2,158 The accompanying notes are an integral part of these unaudited condensed consolidated financial statements. 4 Table of Contents LAKELAND INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (000's except for share