Lakeland Industries to close two facilities in cost-cutting move

HUNTSVILLE, Ala. - Lakeland Industries, Inc. (NASDAQ:LAKE), a manufacturer of protective clothing and apparel with annual revenues of $177.65 million, announced Monday plans to close its warehouse facility in Hull, England and its Veridian manufacturing facility in Quitman, Arkansas. The announcement comes as the company’s stock has declined by roughly 46% over the past six months, according to InvestingPro data.

The closures are part of a broader operational consolidation strategy expected to generate approximately $1 million in annual savings for the remainder of fiscal year 2026. The company has identified additional initiatives projected to yield another $3 million in annualized savings, with benefits expected in the second half of fiscal 2026. These cost-cutting measures come as InvestingPro analysis shows the company has been quickly burning through cash, though it maintains a healthy current ratio of 3.88, indicating strong short-term liquidity.

"We want to express our deep gratitude to the dedicated teams in both Hull and Quitman," said Jim Jenkins, CEO and Executive Chairman of Lakeland Industries. "While these decisions are difficult, they are necessary to align with our strategic initiatives focused on operational efficiency, regional consolidation, and long-term growth."

The company will retain key non-warehouse staff from the Hull facility to continue supporting its UK industrial operations and will consolidate production from Quitman into other Lakeland and Veridian facilities.

Lakeland plans to continue consolidating warehousing, logistics, and manufacturing operations globally over the next 12 to 24 months. The company is also implementing a global ERP system and Lean Six Sigma initiatives designed to improve planning accuracy, forecasting capabilities, and operational intelligence.

The announcement comes as part of Lakeland’s efforts to streamline global operations and improve profitability while maintaining uninterrupted service to its global customer base, according to the company’s press release statement.

Lakeland Industries manufactures and sells protective clothing and accessories for industrial and first responder markets globally. While currently showing losses, analysts tracked by InvestingPro expect the company to return to profitability this year. InvestingPro’s comprehensive analysis, including 10+ additional ProTips and detailed financial metrics, is available through their Pro Research Report, offering deeper insights into the company’s turnaround potential.

In other recent news, Lakeland Industries reported a significant increase in revenue for Q1 2025, reaching $46.7 million, marking a 29% rise year-over-year. Despite this revenue growth, the company experienced a net loss of $3.9 million, contrasting with a net income of $1.7 million from the same quarter last year. The company has also been added to the Russell 3000 and Russell 2000 indexes, which is part of FTSE Russell’s annual reconstitution process. This inclusion is seen as a milestone for Lakeland Industries, which recently reported a 29% sales revenue growth, including a 100% increase in Fire Services revenue.

DA Davidson has reiterated its Buy rating and $23.00 price target on Lakeland Industries, expressing confidence in the company’s management and their goal to triple EBITDA within 3-5 years. The firm also noted that NFPA certification of Jolly boots could be a potential catalyst for the company. At the 2025 Annual Meeting of Stockholders, Lakeland Industries elected Class III directors and ratified the company’s independent auditor. Additionally, the company approved executive compensation, reflecting ongoing corporate governance activities. These developments indicate a period of strategic growth and operational adjustments for Lakeland Industries.

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