Benzinga | Jun 10, 2021 08:13AM EDT

Lakeland Stock Falls After Decline In Q1 Revenue, Contracting Margins

* Lakeland Industries Inc (NASDAQ:LAKE) reported first-quarter FY22 net revenue of $34.1 million, a decrease of 25.2% year-over-year, beating analyst consensus of $33.3 million.

* The industrial protective clothing manufacturer saw growth in traditional industries following a decline in COVID-19 sales as countries reopen their economies after launching a vaccination campaign. High-Performance Wear, Fire and Woven product lines sales increased Y/Y.

* Gross margin of 42.2% contracted 640 basis points Y/Y.

* Operating margin fell 880 basis points Y/Y to 18.3%.

* Adjusted EBITDA declined 44% Y/Y to $7.1 million.

* EPS fell 46.7% Y/Y to $0.57, beating the analyst consensus of $0.53.

* Lakeland generated a free cash flow of $5.79 million and held cash and equivalents of $60.3 million.

* "Beginning in Q4FY21, we began to see a decline in pandemic related sales, and that trend has accelerated through Q1FY22," said President Charles D. Roberson.

* Price Action: LAKE shares are trading lower by 5.4% at $25 in premarket trading on the last check Thursday.