LAKE stock slips as waning COVID demand drags company 4Q revenue (NASDAQ: LAKE)

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Lakeland Industries (NASDAQ: LAKE) is trading ~ 8% lower in the post-market Monday after the maker of protective clothing for the healthcare industry recorded its fourth consecutive quarterly decline of revenue with its preliminary financials for 4Q FY22.

The net sales of $ 26.8M for the quarter indicated a ~ 27% YoY decline, and the company attributed the underperformance to the waning COVID-driven demand and the slow return of core demand to the pre-pandemic levels.

“With pandemic-related demand for PPE garments largely dissipated, the transition to our post COVID business model continued to progress this quarter, setting the stage for return to top-line growth driven by an expanded customer base across our core business segments,” Chief Executive Charles D. Roberson noted.

Meanwhile, the net income for the quarter slipped to $ 0.5M from $ 7.7M in the prior-year period as the gross margin fell to ~ 39% from ~ 49% in 4Q FY21.

Full-year revenue at Lakeland (LAKE) dropped ~ 26% YoY to $ 118.4M, while net income for FY22 contracted ~ 68% YoY to $ 11.4M even as gross margin stood at ~ 43% ahead of the company’s long-term target of 40 %.

Go through the historical financials for the company.

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