Lakeland Industries, Inc. (NASDAQ:LAKE) Q1 2024 Earnings Call Transcript

Roger Shannon: Full-year.

Charlie Roberson: A full-year shift in our disposables, a decline of 6% that has moved largely into the fire and the FR/AR wovens categories, okay? So as we move forward in future years, I expect to see that trend continue, maybe not at a 6% a year pace. But as we keep going, I think that eventually, we will see our strategic items grow to where they’re a 60%-plus, maybe even as high as 65% of our total revenue.

Roger Shannon: And Alex, I would again encourage you and the listeners to kind of refer to a couple of slides we have in the Q1 investor presentation that we posted, you will see. If you look at it, it’s probably referred to as you look at the full-year 2023 or the year that we just finished revenue about 49% of that was from disposables for Q1 of 2024 that was 43%. So as Charlie mentioned, it’s a 6 point decrease, compared to the full-year of last year. The chemical remains, kind of, consistent at around 20% and where we did see the pickup was in the FR/AR and particularly the fire. So Eagle, of course, contributed, having the first full quarter performance or results from Eagle, but also as we mentioned in our prepared remarks, we’re seeing organic growth in fire. Yes.

Charlie Roberson: Yes. And Alex, the other part of that question is in the higher value products is where we have value for product development. We’ve got things that are in the middle there that represent an opportunity to grow those markets, as well as to take market share from our competitors.

Alex Fuhrman: Great. That’s really helpful guys. Thank you very much.

Operator: Thank you very much. Well, we don’t appear to have any further questions in the queue. I’m now going to hand back over to the management team for any closing remarks.

Charlie Roberson: Thank you, Jenny. Thank you all for joining us on today’s call. We look forward to building on our momentum, and sharing our successes within this year. Thank you and have a good day.

Operator: Thank you, everybody. This does conclude today’s conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.