What Lakeland Industries, Inc. told the SEC could break it.

Tariffs materially hurt Lakeland — China and a new 20% Vietnam tariff plus shifting IEEPA/Section 122 policy contributed to gross margin falling from 41.1% to 32.9%, with refund timing and future tariff levels highly uncertain.

“after announcing proposed blanket tariff rates of 46% on imports from Vietnam in April 2025, the U.S. and Vietnam governments announced a trade deal between the countries that imposes 20% tariffs on all products imported to the U.S. from Vietnam that became effective on August 7, 2025.”

Lakeland has non-USD-denominated sales in China (RMB), Canada, South America (Argentine Peso), and Europe (Euro/Pound) and buys Chinese raw materials in RMB, so a stronger U.S. dollar reduces reported sales and raises FX risk.

“Our primary risk from foreign currency exchange rate changes is related to non-US dollar-denominated sales in China, Canada, South America and Europe and, to a lesser extent Mexico and Russia.”

Lakeland may face PFAS-related claims — including for natural-resource degradation and personal injury/product liability from human exposure to PFAS — a litigation risk for a protective-apparel maker.

“subject to additional claims related to PFAS, including for degradation of natural resources from such PFAS and personal injury or product liability claims as a result of human exposure to such PFAS.”

Most of Lakeland's products are made at facilities in China, Vietnam, Mexico, Argentina, New Zealand, Romania and India, and it sources significant raw materials from China — concentrating production offshore and exposing it to international/trade disruption.

“Because most of our products are manufactured at our facilities located in China, Vietnam, Mexico, Argentina, New Zealand, Romania and India, our operations are subject to risks inherent in doing business internationally.”