Lakeland Industries: Challenging Q1 2026 Might Provide Opportunity If You Believe In Management

  • Lakeland's Q1 results showed weak organic growth (2% vs. 10% guidance) and significant margin deterioration, raising concerns about execution post-acquisitions. Acquisitions drove 30% revenue growth but failed to deliver gross profit gains or margin leverage, undermining the investment thesis for the strategy. Operating expenses surged nearly 50%, leading to operating and EBITDA losses; only the Asia segment was profitable, highlighting the urgent need for efficiency.