Lakeland Industries Inc (NASDAQ:LAKE) reported fourth-quarter FY24 sales growth of 7.7% year-on-year to $31.20 million, missing the analyst consensus estimate of $32.50 million.
Gross profit was $11.2 million for the quarter, an increase of 3.2% Y/Y. Gross margin compressed to 35.9% from 37.5% last year. Excluding a one-time charge for inventory right-sizing, the gross margin would have been 44.6%.
Lakeland reported an operating loss of ($3.3) million compared to a profit of $0.1 million last year.
Adjusted EBITDA excluding FX losses was $3.4 million compared to $1.9 million last year with a margin of 11.0% compared to 6.7% last year.
EPS of $(0.13) missed the analyst consensus estimate of $0.30.
Lakeland held $25.2 million in cash and equivalents as of January 31, 2024.
"Our positive performance further strengthens the Company's financial position, particularly our robust balance sheet and cash position, which we believe will allow us to continue pursuing organic and inorganic growth opportunities," said CFO Roger Shannon.
Outlook: Lakeland sees FY25 revenue of $140 million – $150 million versus $138.9 million estimate.
The company expects an adjusted EBITDA, excluding any material negative impact from foreign exchange, of $16.8 million – $18.5 million.
Price Action: LAKE shares closed higher by 1.44% at $17.67 on Wednesday.