Home / Knowledge / News / Apparel/Garments / Industrial clothing maker Lakeland's sales dip 9% in Q2

Industrial clothing maker Lakeland's sales dip 9% in Q2

17
Sep '12
Lakeland Industries Inc., a leading global manufacturer of industrial protective clothing for industry, municipalities, healthcare and to first responders on the federal, state and local levels, announced financial results for its second quarter and first half of fiscal year 2013 ended July 31, 2012.  For all periods, the prior year financial results have been restated to reflect the Company's India glove manufacturing subsidiary as a discontinued operation.

Financial Results Highlights and Recent Company Developments

  • International revenues from continuing operations as a percentage of consolidated sales increased to 61.3% in the second quarter of FY13 from 47.6% in the second quarter of FY12 and 59.2% in the first quarter of FY13
  • Consolidated revenues were lower due to elimination of sales of DuPont products, stock shortage conditions and inefficiencies resulting from a facility relocation
  • International sales of $14.4 million in  the second quarter of  FY13 increased by 17% from $12.3 million in the second quarter of FY12 and improved from $14.2 million in the first quarter of FY13
  • Cash balance of $6.5 million and bank debt of $18.2 million at July 31, 2012

Second Quarter Fiscal Year 2013 Financial Results

Net Sales: Net sales from continuing operations decreased $2.3 million, or 9%, to $23.5 million for the three months ended July 31, 2012, from $25.8 million for the three months ended July 31, 2011. The net decrease was due to a $4.5 million decrease in domestic sales.  This reduction was partially offset by a $1.8 million increase in foreign sales.

US domestic sales of disposables decreased by $3.9 million, chemical suit sales decreased by $0.2 million, wovens decreased by $0.1 million and reflective sales decreased by $0.5 million.

The decrease in domestic sales was mainly due to the loss of DuPont product sales and, to a lesser extent, a shortage of certain products that management believes has been resolved (but may have continuing impact resulting from lost customers), and short-term operating inefficiencies resulting from a relocation of facilities from St. Joseph, MO to Decatur, AL and Mexico which resulted in additional lost sales.

The sales team continues to make progress in converting customers from DuPont's Tyvek to Lakeland branded products. While the Company's sales of Lakeland branded products show strong gains over the Lakeland branded product sales from the same period in the prior year, it will take time to rebuild the lost sales volume, for which there can be no assurance.

Domestic sales in China and to the Asia Pacific Rim remain strong with an increase of approximately $1.9 million or 23% for the second quarter of fiscal 2013 as compared with the same period in the prior year. UK sales increased by $1.0 million, or 69%. Chile and Argentina sales increased by 37% and sales in Brazil increased by $0.7 million or 16.7%. The increase in foreign sales is primarily due to increases in sales of high end chemical suits, FR (flame retardant) garments, and completion of some large contracts.

Click here to read more details:

Lakeland Industries Inc.


Must ReadView All

Pic: Shutterstock

Textiles | On 19th Feb 2020

CLMV nations urged to export goods items to Japan

Cambodia, Laos, Myanmar and Vietnam (CLMV) were recently encouraged...

Pic: Shutterstock

Apparel/Garments | On 19th Feb 2020

Turkey's apparel sector sets $19 bn export target in 2020

Turkey's apparel sector, which sold goods worth $17.7 billion to...

Pic: Waleeds / Shutterstock.com

Textiles | On 19th Feb 2020

Pakistan textile exports up 3.68% in July-Jan FY20

The value of textile and garment exports from Pakistan increased by...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

In 10 years' time, everything will have the responsible factor integrated

Top executives, Textile industry, India

Top executives
Textile industry, India

Such fairs are a must for industry to showcase new innovations

Software Firms, Head honchos

Software Firms
Head honchos

AI / robotics may challenge existing long value chains

Davide Maccabruni,

Davide Maccabruni

Schärer Schweiter Mettler (SSM) manufactures and supplies textile...

Vikram Saria,

Vikram Saria

Shanghai-based Aura Designs Ltd is a leading manufacturer of textile and...

Priyanka Salot,

Priyanka Salot

The Sleep Company was established to upgrade the sleep quality of every...

Mohammad Hassan, Biax Fiberfilm

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Hemant Bheda, Arevo

Hemant Bheda
Arevo

Arevo, based in Silicon Valley in California, develops technology to...

Razvan Popescu, Directa Plus SpA

Razvan Popescu
Directa Plus SpA

Directa Plus is one of the largest producers and suppliers worldwide of...

Madhu Jain, Madhu Jain

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Aneeth Arora, Péro

Aneeth Arora
Péro

The Woolmark Company has partnered with handmade fashion label Péro and...

Cigdem Akin, Cigdem Akin

Cigdem Akin
Cigdem Akin

She has carved a niche for herself as the national brand of Turkey. Her...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


February 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search