Lakeland Industries sells Alabama warehouse for $6.1 million

HUNTSVILLE, Ala. - Lakeland Industries, Inc. (NASDAQ:LAKE), a manufacturer of protective clothing and apparel with annual revenues of $177.65 million, announced Wednesday it has completed the sale of its Decatur, Alabama warehouse property for $6.1 million to an unrelated party. The company’s stock, which has declined nearly 34% over the past six months, is currently trading close to its InvestingPro Fair Value.

The transaction includes a short-term leaseback arrangement for one of the three warehouses on the property while the company searches for a new facility in a more strategic location.

This sale is part of Lakeland’s previously announced operational consolidation strategy, which also includes the planned closures of its warehouse facility in Hull, England and Veridian manufacturing facility in Quitman, Arkansas.

"The sale of the Decatur, Alabama facility is part of our broader operational consolidation strategy aimed at enhancing efficiency and reducing costs," said Jim Jenkins, CEO and Executive Chairman of Lakeland Industries.

The company expects these initiatives to generate annual savings of approximately $1 million for the remainder of fiscal year 2026. Lakeland has also identified additional initiatives expected to yield $3 million in annualized savings, with benefits anticipated in the second half of fiscal 2026.

Harbert Realty Services provided brokerage and advisory services for the sale, while Maynard Nexsen provided legal services.

Lakeland Industries manufactures and sells protective clothing and accessories for industrial and first responder markets globally, with sales in more than 50 countries.

This article is based on a press release statement from the company.

In other recent news, Lakeland Industries announced the delivery of a $3.1 million order of intervention boots to the Italian Ministry of the Interior’s Firefighters Department. This shipment, consisting of 47,500 specialized firefighting boots, marks a significant milestone in a four-year supply contract. Additionally, Lakeland Industries revealed plans to close its warehouse in Hull, England, and its Veridian manufacturing facility in Quitman, Arkansas, as part of a cost-cutting strategy aimed at saving approximately $1 million annually for the remainder of fiscal year 2026. The company anticipates further initiatives to yield an additional $3 million in annualized savings by the second half of fiscal 2026.

DA Davidson has reiterated its Buy rating on Lakeland Industries, maintaining a price target of $23.00 after investor meetings with the company’s management. In another development, Lakeland Industries has been added to the Russell 3000 and 2000 indexes as part of FTSE Russell’s annual reconstitution process. The company also held its 2025 Annual Meeting of Stockholders, resulting in the election of Class III directors and the approval of executive compensation. These developments reflect ongoing strategic and operational adjustments at Lakeland Industries.

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