Lakeland Industries, Inc. reported a 36% increase in net sales to a record $52.5 million in the fiscal second quarter of 2026.
The company's earnings were driven by a 113% surge in Fire Services revenue, contributing 49% to the total revenue.
Gross margin improved by 240 basis points to 35.9% due to lower operating expenses, resulting in positive net income of $0.8 million.
Record Revenue Growth
Net sales increased by 36% in Q2'26, reaching $52.5 million, with strong contributions from Fire Services products.
Geographical Sales Performance
U.S. net sales rose by 78% to $22.1 million, while Europe saw a significant increase of 113% to $15.1 million in Q2'26.
Profitability Enhancement
Sequential gross margin improvement of 240 basis points to 35.9% indicates lower operating expenses and positive net income of $0.8 million in the quarter.
- The company's strong performance in North American Industrial and Fire segments, Asia, and LHD Australia offset softness in Latin America, contributing to the positive financial results.
- Shortfalls in certain regions were highlighted, with specific challenges in Latin America and delays in governmental funding affecting revenue.
- Inventory optimization initiatives and targeted actions are aimed at aligning balances with demand and improving operational efficiency for sustained growth.
Lakeland Industries is strategically focused on navigating tariff uncertainties, growing revenue in key verticals, and optimizing operations for higher margins and improved cash flow. The company's proactive approach to inventory management and upcoming tender cycles position it for a stronger performance in the latter half of fiscal year 2026.