Lakeland Industries Inc (NASDAQ:LAKE) reported first-quarter FY24 sales growth of 5.2% year-on-year to $28.70 million, marginally missing the analyst consensus of $28.71 million.
The gross profit climbed 12.6% Y/Y to $12.4 million, with the margin expanding 290 basis points to 43.4%.
The operating margin was 6.7%, and operating income for the quarter increased 33.7% to $1.9 million.
Adjusted EBITDA of $2.8 million increased 21.7% Y/Y.
EPS of $0.18 beat the analyst consensus of $0.13.
Lakeland held $26 million in cash and equivalents as of Apr. 30, 2023.
“While we delivered year-over-year revenue growth in the quarter, particularly within our Fire and High-Performance product categories, we continued to face headwinds in China in sales of disposables products,” said President and CEO Charlie Roberson.
Roberson concluded, “Looking to the balance of our fiscal year, our outlook within Fire and other key high-value product lines is positive, and we believe we will maintain our targeted level of profitability from a gross profit and Adjusted EBITDA margin standpoint.”
Price Action: LAKE shares are trading higher by 18.7% at $14.58 premarket on the last check Thursday.
