LAKE · CIK 798081
What Lakeland Industries, Inc. told the SEC could break it.
Lakeland's results turn on its offshore manufacturing and the trade policy bearing on it. Most of its protective-apparel products are made in China, Vietnam, Mexico, Argentina, New Zealand, Romania and India, with significant raw materials sourced from China — and tariffs hit hard, with China duties and a new 20% Vietnam tariff (plus shifting IEEPA and Section 122 policy and uncertain refund timing) contributing to gross margin falling from 41.1% to 32.9%. That international footprint also brings currency risk: it has non-USD sales in China, Canada, South America and Europe and buys Chinese raw materials in RMB, so a stronger dollar reduces reported sales. As a maker of protective garments it additionally flags potential PFAS-related claims, including for natural-resource degradation and personal injury from human exposure.
4 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Regulatory & policy
- tariffs (China, 20% Vietnam, IEEPA refund uncertainty, Section 122 global) — cut gross marginhigh
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.”
SEC filing →As of 2026
Currency (FX)
- non-USD sales (RMB, EUR, GBP, CAD, ARS) and RMB raw-material purchasesmedium
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.”
SEC filing →As of 2026
Litigation
- PFAS-related personal-injury / product-liability and natural-resource claimsmedium
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.”
SEC filing →As of 2026
Geographic concentration
- manufacturing concentrated overseas (China, Vietnam, Mexico, Romania, India, Argentina, New Zealand)low
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.”
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