Short-term traders should anticipate downside pressure on the stock due to the massive EPS miss and prior covenant violation. However, longer-term investors may monitor for execution on management's plan to achieve high single-digit revenue growth and positive cash flow in FY27, especially if the transition to asset-based lending succeeds.
Price Chart
Executive Summary
Lakeland Industries reported a massive Q4 FY26 EPS miss of -355% ($-1.64 vs. $-0.36 estimate) and a 1.7% YoY revenue decline to $45.8M, despite full-year revenue growth of 15.2%. The stock will likely react negatively due to the large earnings shortfall, margin compression, and prior covenant breach, even though management cites operational improvements and raised $14M from divestitures.
Key Financial Metrics
Key Facts
- Q4 FY26 EPS was $-1.64 vs. consensus estimate of $-0.36, a 355.6% miss
- Q4 revenue was $45.8M, down 1.7% YoY from $46.6M
- Full-year FY26 revenue grew 15.2% to $192.6M, driven by 49% growth in Fire Services
- Gross margin collapsed to 32.2% from 40.1% YoY due to product mix, underutilization, and cost pressures
- Company was not in compliance with credit covenants as of Jan 31, 2026, but received a limited waiver post-period
- Completed divestiture of HPFR and HiViz lines for $14M in cash proceeds
Financial Impact
Significant negative impact from 355% EPS miss and covenant breach, partially offset by $14M in divestiture proceeds and operational improvements
Risk Factors
- Failure to complete transition to asset-based lending structure
- Continued margin pressure from underutilized Mexico and Vietnam facilities
- Inability to convert $14M in divestiture proceeds into sustainable profitability
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3275796 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jun 9, 2026 16w ago | 8-K | $11.35 $12.13 | ▲ +6.87% | ▲ +0.29% | $10.27 (−9.52%) |
May 27, 2026 18w ago | Press Release | $10.79 $11.25 | ▼ −4.26% | ▼ −2.38% | $10.27 (+4.82%) |
May 20, 2026 19w ago | Press Release | $10.18 $11.86 | ▲ +16.45% | ▲ +11.45% | $10.27 (+0.88%) |
May 14, 2026 20w ago | Press Release | $10.49 $12.05 | ▲ +14.87% | ▲ +11.28% | $10.27 (−2.10%) |
Apr 16, 2026 24w ago | 8-K | $11.20 $10.74 | ▲ +4.11% | ▲ +10.25% | $10.27 (+8.30%) |
Apr 16, 2026 24w ago | Press Release | $11.20 $10.74 | ▲ +4.11% | ▲ +10.25% | $10.27 (+8.30%) |
Apr 13, 2026 24w ago | Press Release | $9.07 $11.25 | ▲ +24.04% | ▲ +15.11% | $10.27 (+13.23%) |
Apr 8, 2026 25w ago | Press Release | $8.91 $12.36 | ▲ +38.72% | ▲ +28.26% | $10.27 (+15.26%) |
Apr 6, 2026 25w ago | Press Release | $8.86 $11.60 | ▼ −30.93% | ▼ −17.46% | $10.27 (−15.91%) |
US Market Status
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