HUNTSVILLE, AL - Lakeland Industries , Inc. (NASDAQ:LAKE), a significant player in the global protective clothing market, declared today that a cash dividend of $0.03 per share will be disbursed for the fiscal third quarter of 2025. Stockholders on record by August 15, 2024, will receive the dividend payment on August 22, 2024.
The company, which specializes in manufacturing protective gear for various industries including healthcare, emergency services, and government agencies, operates on an international scale. With sales extending to over 50 countries, Lakeland's product distribution is managed through a combination of in-house sales teams, customer service groups, and independent sales representatives, catering to a vast network of safety and industrial supply distributors.
Lakeland's clientele encompasses a wide range of sectors, from oil and chemical producers to high-tech electronics manufacturers, along with governmental entities such as fire and law enforcement departments, the Department of Defense, and the Centers for Disease Control.
The announcement of the dividend payment follows the company's established pattern of providing returns to its shareholders and reflects its financial strategies and performance expectations. This move is part of the company's ongoing financial operations, as outlined in its regular communications with investors and regulatory filings.
As is standard practice, the company's forward-looking statements, including those related to dividend payments, are subject to various risks, uncertainties, and assumptions. These statements are based on management's current expectations and are not guarantees of future performance.
In other recent news, Lakeland Industries has seen significant growth and strategic developments. The company reported a 26.5% increase in sales growth, with net sales surging by 27% to reach $36.3 million in the first quarter. Adjusted EBITDA saw a substantial rise of 40% to $3.9 million. This performance led Lakeland Industries to revise its FY25 revenue guidance upward to a range of $150 million to $155 million, with adjusted EBITDA expectations also raised to between $17 million and $20 million.
Lakeland Industries has also expanded its leadership team, appointing Barry Phillips as Senior Vice President of Global Sales and Cameron Stokes as Vice President of Global Industrial Sales. The company has also made updates to its employee stock purchase and equity incentive plans, aiming to attract and retain top talent.
The company's recent acquisition of LHD Group has been met with optimism. This acquisition, which includes LHD Care, a service model focused on the cleaning and repair of firefighting gear, is expected to be a significant growth area for Lakeland Industries. Analyst firms Roth/MKM and Maxim Group have both raised their price targets for Lakeland Industries, reflecting the company's strong sales growth and positive developments.
In addition to these developments, Lakeland Industries has made strategic partnerships to expand its distribution network and has appointed Executive Chairman and acting CEO James Jenkins to the role permanently. These recent developments indicate a promising trajectory for Lakeland Industries.
InvestingPro Insights
Amidst the recent announcement of Lakeland Industries' dividend payment, a closer look at the company's financials through InvestingPro insights reveals a robust financial position and promising growth prospects. With a market capitalization of $171.61 million, Lakeland Industries is navigating the competitive landscape of the protective clothing market with strategic financial management.
InvestingPro data indicates that Lakeland Industries holds more cash than debt on its balance sheet, which is a reassuring sign of financial stability for investors. This is complemented by a P/E ratio of 29.6, which, when adjusted for the last twelve months as of Q1 2023, stands at 33.49. Although the P/E ratio suggests a premium valuation, the company's PEG ratio of 0.17 during the same period points to a potentially undervalued stock given its earnings growth rate.
Analyzing the company's revenue, Lakeland Industries reported a growth of 15.78% in the last twelve months as of Q1 2023, with a quarterly increase of 26.51% in Q1 2023. This sales growth is in line with one of the InvestingPro Tips, which highlights that analysts anticipate sales growth in the current year. Furthermore, the company's strong return over the last year, with a one-year price total return of 55.85%, underscores its robust market performance.
For investors looking for deeper insights, the InvestingPro platform offers additional tips on Lakeland Industries. Currently, there are 14 more InvestingPro Tips available, which provide valuable information for making informed investment decisions. These tips range from valuation multiples to profitability forecasts and can be accessed at https://www.investing.com/pro/LAKE.
With a dividend yield of 0.51% as of the last dividend ex-date on May 14, 2024, and a fair value estimation by analysts at $27, Lakeland Industries continues to demonstrate its commitment to delivering shareholder value, backed by a solid financial foundation.
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