Financial Analysis

"12. COMMITMENTS AND CONTINGENCIES Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Companys management and legal counsel assess such contingent liabilities, which inherently involve an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Companys legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims, as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been or is probable of being incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Companys consolidated financial statements. If the assessment indicates that a potential material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed. In June 2025, the Company initiated legal action against the landlord seeking rescission of the lease due to unremediated structural defects on the newly constructed facilit …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

5. GOODWILL AND INTANGIBLE ASSETS Goodwill as of January 31, 2026 and 2025, and changes in goodwill during the fiscal years then ended, were as follows (in $000s): U.S. Operations Europe Other Foreign Total Balance at January 31, 2024 $ 871 $ 9,049 $ 3,749 $ 13,669 Measurement period adjustment ( 691 ) ( 691 ) Acquisitions 4,956 8,969 13,925 Impairment ( 7,512 ) ( 3,026 ) ( 10,538 ) Currency translation ( 93 ) ( 32 ) ( 125 ) Balance at January 31, 2025 $ 5,827 $ 10,413 $ $ 16,240 Measurement period adjustment 248 ( 2,340 ) ( 2,092 ) Acquisitions 2,425 2,425 Impairment ( 2,604 ) ( 2,604 ) Currency translation 1,318 1,318 Balance at January 31, 2026 $ 8,500 $ 6,787 $ $ 15,287 As of November 1, 2025, the Company's annual goodwill impairment testing date, the Company performed a quantitative assessment to evaluate the goodwill of the LHD reporting unit using market value and discounted cash flow methodologies. The LHD reporting units forecast was affected by variability in revenue, as its business is largely driven by the timing of tender-based sales, as well as higher operating costs. Based on the results of the quantitative assessment, the Company determined that the carrying value of the LHD reporting unit exceeded its fair value and recognized a goodwill impairment charge of $ 2.6 million representing approximately 45 % of the goodwill associated with the LHD reporting unit within the Europe geographic segment. If we are unable to achieve our estimates of future cash flows or …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

10. INCOME TAXES Income tax expense (benefit) is based on the following pretax income (loss): Year Ended January 31, 2026 2025 Domestic $ ( 18,465 ) $ ( 14,701 ) Foreign 766 ( 3,655 ) Total $ ( 17,699 ) $ ( 18,356 ) The domestic and foreign pretax income (loss) in the schedule above reflects intercompany dividends paid to the U.S. from international subsidiaries of $ 4.8 million for fiscal year ended January 31, 2025. No intercompany dividends were paid to the U.S. from international subsidiaries are reflected in the schedule above for the fiscal year ended January 31, 2026. Year Ended January 31, 2026 2025 Income Tax Expense (Benefit) Current: Federal $ 4 $ 8 State and other taxes 24 29 Foreign 2,943 3,832 Total Current Tax Expense $ 2,971 $ 3,869 Deferred: Domestic $ 4,841 $ ( 3,312 ) Foreign ( 200 ) ( 838 ) Total Deferred Tax Expense 4,641 ( 4,150 ) Total Income Taxes $ 7,612 $ ( 281 ) The following table presents the income taxes paid disaggregated by domestic, state and international taxes, with further disaggregation by jurisdiction in accordance with the guidance under ASU 2023-09. Year Ended January 31, 2026 Federal $ State 41 Foreign Argentina 328 Australia 739 China 522 India 240 Russia 253 United Kingdom 283 Vietnam 392 Other 247 Total Income Taxes Paid $ 3,045 The following table is a reconciliation of the U.S. federal statutory rate of 21 % to the Company's effective rate for the year ended January 31, 2026 in accordance with the guidance in ASU 2023-09. Year End …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

7. LONG-TERM DEBT Revolving Credit Facility On June 25, 2020, the Company entered into a Loan Agreement (the Original Loan Agreement) with Bank of America, N.A. (Lender), as amended by Amendment No. 1 to the Loan Agreement, dated June 18, 2021 (Amendment No. 1), Amendment No. 2 to the Loan Agreement, dated March 3, 2023 (Amendment No. 2), Amendment No. 3 to the Loan Agreement, dated November 30, 2023 (Amendment No. 3), Amendment No. 4 to the Loan Agreement, dated March 28, 2024 (Amendment No. 4), Amendment No. 5 to the Loan Agreement, dated December 12, 2024 (Amendment No. 5), and Amendment No. 6 to the Loan Agreement, dated July 7, 2025 (Amendment No. 6 and, collectively with Amendment No. 1, Amendment No. 2, Amendment No. 3, Amendment No. 4, and Amendment No. 5, the Loan Agreement Amendments; and the Original Loan Agreement, as amended by the Loan Agreement Amendments, the Amended Loan Agreement). The Amended Loan Agreement provides the Company with a secured revolving credit facility of up to $ 40.0 million of borrowings (giving effect to the reduction of such limit following the application of the net proceeds from the Company's January 2025 equity issuance). The revolving credit facility includes a $ 10.0 million letter of credit sub-facility. The credit facility matures on December 12, 2029 . On April 13, 2026, the Company and the Lender entered into a limited waiver (the Limited Waiver), pursuant to which the Lender waived the Company's non-compliance as of January 31, …

LongTermDebtTextBlock · excerpt; the full note is in the filing

Recently Adopted and Issued Accounting Standards and Disclosure Rules The Company considers the applicability and impact of all accounting standards updates (ASUs). Management periodically reviews new accounting standards that are issued. Income Taxes In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This guidance requires a public entity to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if the items meet a quantitative threshold. The guidance also requires all entities to disclose annually income taxes paid (net of refunds received) disaggregated by federal (national), state and foreign taxes and to disaggregate the information by jurisdiction based on a quantitative threshold. This guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted, and this guidance should be applied prospectively but there is the option to apply it retrospectively. The Company has prospectively adopted the provisions of this guidance in conjunction with our Form 10-K for our fiscal year ending January 31, 2026. Disaggregation of Income Statement Expenses In November 2024, the FASB issued ASU No. 2024-03 (ASU 2024-03), Disaggregation of Income Statement Expenses (DISE) . ASU 2024-03 requires disaggregated disclosure of income statement expe …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

13. SEGMENT REPORTING Domestic and international sales from continuing operations are as follows in millions of dollars: 2026 2025 Domestic $ 81.6 $ 60.4 International 111.0 106.8 Total $ 192.6 $ 167.2 The Company is organized into seven geographical operating segments that are based on management responsibilities: U.S. Operations (including Corporate), Europe, Mexico, Asia, Canada, Latin America and Other Foreign. Gross profit and Operating profit are the measures used by the chief operating decision maker, identified as our President and Chief Executive Officer , to evaluate segment performance and identify opportunities when allocating resources. The accounting principles applied at the reportable segment level in determining the segment measure of profit or loss are the same as those applied at the consolidated financial statement level. Sales and transfers between operating segments are accounted for at market-based transaction prices and are eliminated in consolidation. Our U.S. operations include a facility in Alabama (primarily the distribution to customers of the bulk of our products and the light manufacturing of our chemical, wovens, reflective, and fire products) and facilities in Arizona, California and Iowa (fire services). The Company also maintains one manufacturing facility in China (primarily disposable and chemical suit production), a manufacturing facility in Mexico (primarily disposable, reflective, fire and chemical suit production), a manufacturing faci …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

9. STOCKHOLDERS EQUITY On June 21, 2017, the stockholders of the Company approved the Lakeland Industries, Inc. 2017 Equity Incentive Plan (as amended to date, the 2017 Plan). The executive officers and all other employees and directors of the Company, including its subsidiaries, are eligible to participate in the 2017 Plan. The 2017 Plan is administered by the Compensation Committee of the Board of Directors (the Committee), except that with respect to all non-employee directors, the Committee shall be deemed to include the full Board. The 2017 Plan provides for the grant of equity-based compensation in the form of stock options, restricted stock, restricted stock units, performance shares, performance units or stock appreciation rights (SARs). An aggregate of 1,240,000 shares of the Companys common stock are currently authorized for issuance under the 2017 Plan, as amended, subject to adjustment as provided in the 2017 Plan for stock splits, dividends, distributions, recapitalizations and other similar transactions or events. If any shares subject to an award are forfeited, expire, lapse or otherwise terminate without issuance of such shares, such shares shall, to the extent of such forfeiture, expiration, lapse or termination, again be available for issuance under the 2017 Plan. The Company recognized total stock-based compensation expense, which are reflected in operating expenses (in 000s): Year Ended January 31, 2026 2025 2017 Plan: Total restricted stock and stock opti …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

"14. SUBSEQUENT EVENTS O n March 27, 2026, the Company sold certain assets and transferred certain liabilities associated with its high-visibility and high-performance workwear styles consisting of ANSI-compliant high-visibility apparel and arc-rated and flame-resistant technical garments to National Safety Apparel, LLC (the ""Buyer"") pursuant to an Asset Purchase Agreement (the ""Purchase Agreement""). The Company received aggregate consideration of approximately $ 14.0 million, subject to a $ 0.4 million escrow for post-closing inventory adjustments and a $ 1.0 million escrow to secure the Companys indemnification obligations. The Purchase Agreement contains customary representations, warranties, and covenants, including a restrictive covenant that limits the Company from engaging in certain business activities for five years following the closing."

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11. Contingencies Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Companys management and legal counsel assess such contingent liabilities, which inherently involve an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Companys legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims, as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been or is probable of being incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Companys consolidated financial statements. If the assessment indicates that a potential material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed. In June 2025, the Company initiated legal action against the landlord seeking rescission of the lease due to unremediated structural defects on the newly constructed facility in Monterrey, M …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

5. Goodwill and Intangible Assets, Net Changes in the carrying amount of goodwill for the three months ended April 30, 2026 and 2025, are as follows (in $000s): 2026 2025 Balance at January 31, $ 15,287 $ 16,240 Currency translation ( 84 ) 842 Balance at April 30, $ 15,203 $ 17,082 Changes in intangible assets, net, during the three months ended April 30, 2026 and 2025, are as follows (in $000s): 2026 2025 Balance at January 31, $ 31,724 $ 25,503 Amortization ( 646 ) ( 381 ) Currency translation ( 147 ) 1,026 Balance at April 30, $ 30,931 $ 26,148 Amortization expense was $ 0.6 million and $ 0.4 million in the three months ended April 30, 2026 and 2025 , respectively, and was included in operating expenses on the condensed consolidated statements of operations.

GoodwillAndIntangibleAssetsDisclosureTextBlock

"9. Income Taxes The Companys provision for income taxes for the three months ended April 30, 2026 and 2025 is based on the estimated annual effective tax rate, in addition to discrete items. The Companys effective tax rate for the three months ended April 30, 2026 was 78.5 % which differs from the U.S. federal statutory rate of 21 % primarily as a result of a valuation allowance against the Companys U.S. operations. The Company's effective tax rate for the three months ended April 30, 2025 was 23.4 % which differs from the U.S. federal statutory rate of 21 %, primarily due to rate differentials in foreign tax jurisdictions. The Company records net deferred tax assets to the extent the Company believes these assets will more likely than not be realized. The valuation allowance was $ 19.7 million and $ 18.3 million as of April 30, 2026 and January 31, 2026, respectively. The increase in the valuation allowance for the three months ended April 30, 2026, was treated as a component of the estimated annual effective tax rate. The Company continually reviews the adequacy of its valuation allowance and recognizes the benefits of deferred tax assets only as the reassessment indicates that it is more likely than not that the deferred tax assets will be realized in accordance with ASC 740, Income Taxes. Due to the declines in revenue and profitability in prior periods and the weighing of all positive and negative objective evidence considered, the Company has limited ability to rely on …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

6. Long-Term Debt Revolving Credit Facility On June 25, 2020, the Company entered into a Loan Agreement (the Original Loan Agreement) with Bank of America, N.A. (Lender), as amended by Amendment No. 1 to the Loan Agreement, dated June 18, 2021 (Amendment No. 1), Amendment No. 2 to the Loan Agreement, dated March 3, 2023 (Amendment No. 2), Amendment No. 3 to the Loan Agreement, dated November 30, 2023 (Amendment No. 3), Amendment No. 4 to the Loan Agreement, dated March 28, 2024 (Amendment No. 4), Amendment No. 5 to the Loan Agreement, dated December 12, 2024 (Amendment No. 5), and Amendment No. 6 to the Loan Agreement, dated July 7, 2025 (Amendment No. 6 and, collectively with Amendment No. 1, Amendment No. 2, Amendment No. 3, Amendment No. 4, and Amendment No. 5, the Loan Agreement Amendments; and the Original Loan Agreement, as amended by the Loan Agreement Amendments, the Amended Loan Agreement). The Amended Loan Agreement provides the Company with a secured revolving credit facility of up to $ 40.0 million of borrowings (giving effect to the reduction of such limit following the application of the net proceeds from the Company's January 2025 equity issuance). The revolving credit facility includes a $ 10.0 million letter of credit sub-facility. The credit facility matures on December 12, 2029. Borrowings under the revolving credit facility bear interest at a rate per annum equal to the sum of (i) the greater of the daily Secured Overnight Financing Rate (SOFR) or an index …

LongTermDebtTextBlock · excerpt; the full note is in the filing

Recently Issued and Adopted Accounting Standards The Company considers the applicability and impact of all accounting standards updates (ASUs). Management periodically reviews new accounting standards that are issued. Income Taxes In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This guidance requires a public entity to disclose in their rate reconciliation table additional categories of information about federal, state and foreign income taxes and to provide more details about the reconciling items in some categories if the items meet a quantitative threshold. The guidance also requires all entities to disclose annually income taxes paid (net of refunds received) disaggregated by federal (national), state and foreign taxes and to disaggregate the information by jurisdiction based on a quantitative threshold. This guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted, and this guidance should be applied prospectively but there is the option to apply it retrospectively. The Company prospectively adopted the provisions of this guidance in conjunction with our Form 10-K for our fiscal year ended January 31, 2026. Disaggregation of Income Statement Expenses In November 2024, the FASB issued ASU No. 2024-03 (ASU 2024-03), Disaggregation of Income Statement Expenses (DISE). ASU 2024-03 requires disaggregated disclosure of income statement expenses for public business en …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

12. Segment Reporting Domestic and international sales are as follows in millions of dollars: Three Months Ended April 30, (in millions) 2026 2025 Domestic $ 20.1 $ 20.7 International 27.3 26.0 Total Sales $ 47.4 $ 46.7 The Company is organized into seven geographical operating segments that are based on management responsibilities: U.S. Operations (including the corporate office), Europe, Mexico, Asia, Canada, Latin America and Other Foreign. Gross profit and operating income (loss) are the measures used by the chief operating decision maker, identified as our President and Chief Executive Officer , to evaluate segment performance and identify opportunities when allocating resources. The accounting principles applied at the reportable segment level in determining the segment measure of profit or loss are the same as those applied at the consolidated financial statement level. Sales and transfers between operating segments are accounted for at market-based transaction prices and are eliminated in consolidation. Our U.S. operations include a facility in Alabama (primarily the distribution to customers of the bulk of our products and the light manufacturing of our chemical, wovens, reflective, and fire products) and facilities in Arizona, California and Iowa (fire services). The Company also maintains one manufacturing facility in China (primarily disposable and chemical suit production), a manufacturing facility in Mexico (primarily disposable, reflective, fire and chemical su …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

8. Stockholders Equity On June 21, 2017, the stockholders of the Company approved the Lakeland Industries, Inc. 2017 Equity Incentive Plan (the 2017 Plan). The executive officers and all other employees and directors of the Company, including its subsidiaries, are eligible to participate in the 2017 Plan. The 2017 Plan is administered by the Compensation Committee of the Board of Directors (the Committee), except that with respect to all non-employee directors, the Committee shall be deemed to include the full Board. The 2017 Plan provides for the grant of equity-based compensation in the form of stock options, restricted stock, restricted stock units, performance shares, performance units, or stock appreciation rights (SARs). An aggregate of 1,240,000 shares of the Companys common stock are currently authorized for issuance under the 2017 Plan, as amended, subject to adjustment as provided in the 2017 Plan for stock splits, dividends, distributions, recapitalizations and other similar transactions or events. If any shares subject to an award are forfeited, expire, lapse or otherwise terminate without issuance of such shares, such shares shall, to the extent of such forfeiture, expiration, lapse or termination, again be available for issuance under the 2017 Plan. The Company recognized total stock-based compensation costs, which are reflected in operating expenses (in $000s): Three Months Ended April 30, 2026 2025 2017 Plan: Total restricted stock and stock option programs $ …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing