Small-cap protective apparel maker Lakeland rises after securing new contract
Quotes on protective apparel manufacturer Lakeland Industries jumped almost 5% yesterday, Tuesday, January 28, after the company announced a contract with a local government procurement service in the U.S. with more than 9,000 buyers.
Details
Lakeland stock spiked almost 5% on the Nasdaq to $24.25 per share yesterday, before extending the gains in premarket trading today, when it climbed another 1.5%.
The company announced a contract to supply emergency medical and rescue equipment through the HGACBuy government-to-government procurement service, which allows local government entities across the U.S. to buy expensive products and services at better rates. Currently, it has more than 9,000 buyers, according to Lakeland’s press release. Program participants making bulk purchases can access discounts from more than 800 contractors, according to the official website of fire truck manufacturer Custom Fire.
About Lakeland Industries
Lakeland manufactures and sells protective clothing and accessories for industrial companies and first responders. It operates in over 50 countries, supplying products to firms in the oil, chemical, automotive, and transportation sectors, as well as fire and rescue services.
Lakeland has expanded significantly over the past year. In February 2024, it acquired Jolly, a manufacturer of footwear for firefighters, the military, and police, for $9.3 million. In the summer, it bought German peer LHD Group Deutschland and its subsidiaries in Hong Kong and Australia for about $16.3 million. In December, Lakeland acquired firefighter protective apparel manufacturer Veridian for approximately $25 million.
«Our head-to-toe fire portfolio now includes a wide range of life-saving gear such as chemical protective clothing, high-performance Flame Resistant workwear, critical environments protective apparel, and more,» Lakeland President, CEO, and Chair Jim Jenkins was quoted as saying in the press release.
However, this inorganic growth has come with more expenses and debt, Simply Wall St noted. In the fiscal-2025 third quarter (ended October 31), Lakeland’s net sales grew 44.5% year over year to $45.8 million, while total debt came in at $31.0 million.
As part of its efforts to reduce debt, the company announced a stock offering last week, which caused its shares to plunge 15%. The next day, it disclosed the terms of the offering, prompting the stock to drop another 11%. However, by the close of trading yesterday, it had clawed back most of these losses.
According to MarketWatch, the two analysts who cover Lakeland both rate it a «buy.» Their average target price of $28.00 suggests upside of just over 15%.
