Lakeland: The Number Moved, Just Not Enough

Joshua Pilgreen 47 Followers Follow Summary Lakeland Industries remains a Buy, but I lower my target to $14.50 from $18.00 due to revised margin and litigation risk. Gross margin improved to 37%, but only half was structural; excluding a one-time tariff refund, the true margin was 34%. Operating expenses rose to 32% of sales, delaying meaningful operating income until at least fiscal 2029 in my updated base case. PFAS litigation risk has increased with new multidistrict litigation, raising expected legal costs and impacting my valuation model. golfcphoto/iStock via Getty Images In July I published an article called " A Trade That Lives Or Dies On One Number ." In the analysis I argued that Lakeland Industries, Inc. ( LAKE ) could move significantly to the upside This article was written by Joshua Pilgreen 47 Followers Follow I run Arbor Equity Research, an independent equity research shop focused on sectors where I have real domain edge. My coverage centers on industrial safety, highway and infrastructure construction, and upstream energy. I'm a fundamental analyst at core — I care about balance sheet quality, backlog conversion, margin durability, and management capital allocation — but I also apply quantitative techniques, both to pressure-test individual theses and to drive systematic portfolio management: factor and momentum signals, regime-based positioning, and risk-managed sizing. I hold an MBA, an MS in Finance, the CMA, and the FMVA. My goal with every piece is a defensible, model-driven view rather than a headline call. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.