The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Gerry Sweeney - ROTH Capital Partners - Analyst
: Good afternoon, Jim and Roger, thanks for taking my call. A lot of information out there. I had a few questions I wanted to dig into, certain a couple
areas. I mean, specifically around gross margins, a couple of different things moving there.
But Roger, I think you talked about purchase variance and amortization right up in some of the products sold and that may reverse itself over time.
Could you give a little bit more detail as to how much of a headwind that was this quarter and what we -- how the next couple quarters are going
to develop and when do we see sort of the net benefit coming through?
Question: Gerry Sweeney - ROTH Capital Partners - Analyst
: That is separate from the --
Question: Gerry Sweeney - ROTH Capital Partners - Analyst
: Got you. But part of that headwind was you built the inventory for future sales and that caused some of the issues. Got it.
What about on the OpEx side? So I mean SG&A was -- or I mean, operating costs were $20 million plus. I think that was probably higher than a lot
of people had modeled on the Street. Again, a lot of numbers being thrown around here so anything in there that is one time or we can adjust? I
saw some adjustments at the end but didn't have time to go through with a fine tooth comb, but maybe help me where SG&A can kind of fall out
every term.
Question: Gerry Sweeney - ROTH Capital Partners - Analyst
: And suffice to say, you've identified $4 million in sort of cost out. I think that -- does that come from the OpEx side or is that a mix of OpEx and cost
of control?
Question: Gerry Sweeney - ROTH Capital Partners - Analyst
: Got it. Some of it is just natural consolidation. One last question, I'll jump back in line. When I head over to the growth side, obviously fire big
opportunity for you. Can you maybe give us a little detail how things are going on? I mean, growth was up, obviously, as you highlighted but some
of it was certainly by acquisition, but really interested in sort of maybe, the head-to-toe strategy bundling. What are we seeing on that front and
just opportunities as we move forward.
Question: Gerry Sweeney - ROTH Capital Partners - Analyst
: And those developments are wrapped around that sort of head to toe. I mean, whether gloves give you an opportunity or --
Question: Mike Shlisky - D.A. Davidson - Analyst
: If I read everything correctly and heard your comments, the kind of bottom-line organic growth in the quarter, I think it was 2%. If I'm mistaken
correct me. But can you update us on your expectations for organic growth for the full year? Is it still high single digits or has that changed at all?
REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us
consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.
JUNE 09, 2025 / 8:30PM, LAKE.OQ - Q1 2026 Lakeland Industries Inc Earnings Call
Question: Mike Shlisky - D.A. Davidson - Analyst
: Okay. And then to reach that full-year goal and really your overall revenue goal for the year, do you need to have that Jolly order that's been kind
of hung up here, shipped during the year? Or is that kind of like a bonus on top of what you're already thinking you could be getting?
Question: Mike Shlisky - D.A. Davidson - Analyst
: Okay, perfect. Maybe lastly just on the cadence of how the rest of the year is going to play out from an EBITDA perspective and some of the
accounting machinations that happened here in the first quarter. Does it completely reverse in 2Q or is there some kind of gradual roll up that's
going to happen for the rest of the year with kind of what was lost here and was gained for the rest of the year?
Question: Mark Smith - Lake Street Capital Markets - Analyst
: First off, just want to look at the balance sheet a little bit here on inventories and just kind of your comfort level with where inventories are and
maybe if there needs to be more build as we think about tariff mitigation.
Question: Mark Smith - Lake Street Capital Markets - Analyst
: Yeah. Next, I want to dig back in the gross margin a little bit, just kind of looking at the bar chart, you guys have your presentation here, manufacturing
costs being kind of the biggest headwind. Obviously, a lot of things happening there. But I'm curious if you just kind of break out just if you call it
organic kind of headwinds there, labor, increased cost of materials. What's kind of hurting there and what you can do to kind of help fix that a little
bit, and including your price increases and what you maybe have done or looking at as far as price.
Question: Mark Smith - Lake Street Capital Markets - Analyst
: Okay. And my last question, just digging a little deeper on the SG&A here. I'm curious as we look at the breakdown that you guys gave on kind of
organic cash SG&A, just up a little bit year over year. I'm curious about the inorganic cash SG&A. It seems like these acquired companies are pretty
clean. But are there opportunities to cut at all or to get more efficiencies within SG&A on some of these acquired companies.
| 
