LAKELAND'S $18M EBITDA PROMISE BECAME A $5.85 PER-SHARE LOSS: LEVI & KORSINSKY, LLP

• Pacific Helmets would add $7 to $8 million in annual sales revenue and be "immediately accretive"
• Jolly would add $14 to $16 million in sales revenue and be "immediately accretive"
• FY 2025 adjusted EBITDA, excluding FX, would reach $18 million to $21.5 million
• FY 2026 revenue would reach $210 to $220 million with adjusted EBITDA of $24 to $29 million
• The SSQ acquisition strategy would position Lakeland "for growth in revenue and profitability"
• Fire services growth would "accelerate" and the company would become "less susceptible to revenue timing swings"

As late as December 5, 2024, the CFO stated that "given the totality of our positive results, trends and expectations, we continue to expect Adjusted EBITDA excluding FX of at least $18 million."

The Reality

The lawsuit contends that behind these projections, Lakeland's acquired businesses were experiencing production issues, shipping delays, certification holdups, and a slower than expected rollout of new products. Quarter after quarter, the gap between company promises and actual performance widened:

• Q2 FY2025 (September 4, 2024): Revenue missed consensus by $1.39 million. Stock fell 7.82%.
• Q4 FY2025 (April 9, 2025): GAAP EPS of negative $2.42, missing estimates by $2.80. Adjusted EBITDA came in at $17.4 million, below the "at least $18 million" floor. Stock fell 14.33%.
• Q1 FY2026 (June 9, 2025): Revenue missed by $2.1 million. Stock fell 22.16%.
• Q2 FY2026 (September 9, 2025): Revenue missed by $2.09 million. Stock fell 4.43%.
• Q3 FY2026 (December 9, 2025): Revenue missed by $9.05 million. FY 2026 guidance withdrawn entirely. CFO terminated. Stock fell 38.97%.

What the Lawsuit Alleges About the Gap

The action asserts that management knew or should have known that their acquisitions were underperforming projections, yet continued to reassure investors about full-year targets and strategic momentum. Each corrective disclosure attributed the shortfall to the same recurring problems at Pacific Helmets and Jolly, problems that the complaint charges existed well before they were revealed to stockholders.

"Companies that make specific promises to investors about future performance have an obligation to disclose known risks to those projections. The contrast between what Lakeland told the market and what actually occurred raises important questions about the accuracy of those representations." -- Joseph E. Levi, Esq.

Speak with an attorney about recovering your Lakeland losses or call (212) 363-7500.

LEAD PLAINTIFF DEADLINE: April 24, 2026

Levi & Korsinsky, LLP is a nationally recognized shareholder rights firm. Over the past 20 years, the firm has secured hundreds of millions of dollars for aggrieved shareholders. Ranked in ISS Top 50 for seven consecutive years.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171

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SOURCE Levi & Korsinsky, LLP