Firm Contributors
Jim Jenkins – Government Chairman
Roger Shannon – CFO
Convention Name Contributors
Gerry Sweeney – ROTH Capital
Operator
Good day, and welcome to the Lakeland Industries Fiscal 2024 Third Quarter Monetary Outcomes Convention Name. [Operator Instructions]. Throughout right now’s name, we are going to make statements regarding our targets and targets for future operations, monetary and enterprise developments, enterprise prospects and administration’s expectations for future efficiency that represent forward-looking statements beneath federal securities legal guidelines.
Any such forward-looking statements mirror administration’s expectations based mostly upon at present accessible info and will not be ensures of future efficiency and contain sure dangers and uncertainties which are extra totally described in our SEC filings. Our precise outcomes, efficiency or achievements could differ materially from these expressed in or implied by such forward-looking statements. We undertake no obligation to replace or revise any forward-looking statements to mirror occasions or developments after the date of this name.
Throughout right now’s name, we are going to focus on monetary measures derived from our monetary statements that aren’t decided in accordance with U.S. GAAP, together with adjusted EBITDA and adjusted EBITDA margin. A reconciliation of every of the non-GAAP measures mentioned on this name to probably the most instantly comparable GAAP measure is offered in our earnings launch.
Presently, I want to introduce you to your host for this name, Lakeland Industries’ Government Chairman, Jim Jenkins, Mr. Jenkins, the ground is yours.
Jim Jenkins
Thanks, operator. Good morning, and thanks all for becoming a member of us for our third quarter fiscal 2024 earnings name. I want to start right now’s name by thanking and celebrating our Lakeland group members throughout the corporate with our dedication to delivering our strategic initiatives in the course of the quarter. These efforts have helped drive income progress in key strategic markets, execute a continued shift in our income profile in direction of higher-value merchandise and perform our small, strategic and fast, or SSQ, acquisition technique.
As we enter the following chapter for Lakeland, I do know I can converse for myself, our govt group and the Board when I say that we’re excited in regards to the firm’s future supported by the power and depth of our group and management groups.
Earlier than turning to our third quarter outcomes, I’d like to offer a short replace on our ongoing CEO search. The Board is following a really thorough vetting and choice course of and interesting govt recruiter has preliminarily recognized a number of candidates. We’re keen to seek out the suitable chief, however we can be methodical and deliberate as we search a candidate who will proceed to drive our enterprise technique and tradition. Lakeland has a strong basis in place with an thrilling runway for progress, and the Board and I look ahead to sharing extra with you because the search course of evolves.
Now shifting gears to the quarter. Our first third quarter outcomes — our fiscal third quarter outcomes had been very optimistic. And as we proceed to see demand speed up and progress inside our key product traces and markets, Lakeland delivered web gross sales of $31.7 million, up 11.6% year-over-year.
Notably, lots of our high-value strategic product traces noticed progress within the quarter, together with fireplace service and industrial merchandise classes. Our fireplace service enterprise continues to increase, pushed by our superior lead occasions versus our opponents, progressive designs from the Eagle group and onboarding successes with new distributors. As anticipated, we additionally proceed to see sturdy demand from oil and fuel turnaround exercise, which, as we mentioned in earlier quarters, is having prolonged season in 2023.
Lastly, we noticed a major enhance in our direct-to-customer container enterprise, which is a strategic focus for us. This progress highlights the numerous momentum Lakeland is constructing in our high-value product traces, and our purpose to extend penetration in high-value markets is producing optimistic outcomes. We consider our not too long ago introduced Pacific Helmets acquisition will additional improve our fireplace service progress.
When it comes to profitability, our third quarter gross margins remained sturdy at 42.2%. And importantly, our adjusted EBITDA grew by over $300,000 or 10.8% to $3.3 million within the quarter, even with the destructive impression of overseas trade within the quarter, which Roger will focus on later. This resulted in an adjusted EBITDA margin of 10.4% in comparison with 10.4% final yr. Adjusted for the impression of destructive FX within the quarter, our adjusted EBITDA would have been roughly 14.2%.
With regard to our geographic markets, we proceed to see sturdy demand developments in North America, notably within the U.S. and Latin America in addition to our EMEA markets to a lesser extent. We additionally had been inspired to see will increase in our India and Australia markets for the quarter as these are potential progress markets for us.
In North America, our gross sales groups proceed to have success including new distributors and increasing our industrial attain. Moreover, our significantly shorter manufacturing lead occasions as in comparison with lots of our opponents have resulted in Lakeland gaining traction as a most well-liked provider in our fireplace service and industrial classes.
As we now have mentioned in previous calls, we proceed to see our strategically positioned manufacturing as a aggressive benefit in enabling our favorable lead occasions. Lastly, our Latin American enterprise continued its exceptionally sturdy efficiency for the yr as we’re the market chief in a number of of the markets served. As has been the case for the primary half of the yr, our Asian markets continued to carry out under expectations on account of ongoing macroeconomic weak spot and overhang of PPE tools from China’s COVID-19 lockdown. In consequence, we count on our Asia Pacific enterprise to stay under our preliminary projections during the last quarter of the yr.
Shifting gears a bit, I’d wish to spend a couple of minutes discussing the corporate’s small, strategic and fast M&A method and our total dedication to figuring out and sustaining a sturdy acquisition pipeline with alternatives that improve Lakeland’s high-value product portfolio. Final week, we had been happy to announce the acquisition of Pacific Helmets. Pacific is a extremely regarded world model with a well-established popularity for high quality and progressive design and manufacturing and the rising first responder security helmet market.
The corporate has a broad vary of helmet fashions, kinds and certifications and so they have demonstrated the flexibility to develop new merchandise and promote efficiently all over the world. The acquisition of Pacific is a major milestone in our efforts to construct Lakeland as a premier world fireplace model because it enhances our product portfolio and strengthens our capability to ship distinctive fireplace turnout safety choices to our clients worldwide.
Pacific has one of many largest ranges of helmets — helmet mannequin, kinds and certifications of any worldwide helmet producer. The corporate at present produces 26-plus helmet fashions and has a major variety of new product improvements launching within the close to future. Like Lakeland, Pacific owns its personal manufacturing amenities and has an in-house R&D group that allows it to customise and produce helmets specified to the shoppers’ particular necessities extra simply.
Pacific Helmet at present has a robust income and tender pipeline and world demand for security helmets is rising. They already promote into over 40 nations, and we consider the enterprise is additional scalable via the addition of recent distributors, notably within the Northern Hemisphere and rising markets, during which Lakeland already has a robust presence. We count on this acquisition to be instantly accretive to Lakeland’s backside line outcomes and are excited in regards to the natural and cross-selling alternatives going ahead.
I’m excited to see our world gross sales group execute on this chance, and we look ahead to sharing extra in regards to the integration of the Pacific enterprise within the Lakeland platform sooner or later. I’d additionally wish to welcome the Pacific group to the Lakeland’s household, and we’re very excited to have you ever as a part of our group and the potential for the longer term.
I additionally wish to thank our group right here at Lakeland for all their laborious work not too long ago in closing this deal. We proceed to be very happy with the efficiency of our Eagle acquisition, and we consider Eagle is a superb template for our SSQ acquisition mannequin. After delivering a big tender throughout Q2 of this yr, we count on Eagle to ship one other bigger order in This autumn.
Moreover, we’re persevering with efforts to combine Eagle merchandise into Lakeland’s geographic markets in addition to to speed up the gross sales of Eagle gloves specifically block and hoods. Eagle’s fired gloves and particle blocking hoods are progressing via the certification course of, and Lakeland has leveraged Eagle’s in-house designers within the growth of our next-generation NFPA turnout gear, which is at present underway.
As we glance to the stability of the fiscal yr and past, I’m assured in and impressed by our present administration group. I’m additionally inspired by the thrilling runway for progress this firm has. Lakeland is targeted on solidifying our foundational enterprise and investing our assets in high-growth geographies, which can embody product line enhancements and the optimization of our working and gross sales channels.
Over the long run, we’re dedicated to constructing out a premier world fireplace model, as I beforehand talked about. This can embody the discharge of recent and progressive merchandise, additions to our world gross sales drive and a renewed advertising focus, all of those efforts will profit from the addition of Pacific to our current platform.
Lastly, Lakeland is dedicated to increasing our merchandise and capabilities via our small strategic and fast acquisition technique. Continued M&A will assist Lakeland’s already numerous line of merchandise, convey premier world manufacturers on to the Lakeland platform and drive sturdy working leverage via cross-selling on Lakeland’s huge distribution and gross sales community.
I’ll now go the decision to Roger to offer an summary of our monetary outcomes. Roger?
Roger Shannon
Thanks, Jim, and hiya, everybody. Earlier than I get began with my feedback on the financials, I’d wish to remind everybody listening that we now have posted investor slides that align with the data I’ll current on our web site at www.lakeland.com. Lakeland delivered gross sales of $31.7 million within the third quarter ended October 31, 2023. Home gross sales had been $15.1 million or 47.6% of whole revenues and worldwide gross sales had been $16.6 million or 52.4% of whole revenues.
This compares with home gross sales of $14 million or 49.3% of the full and worldwide gross sales of $14.4 million or 50.7% of the full within the third quarter of fiscal ’23. As we famous in our earnings press launch issued yesterday afternoon, we delivered sturdy year-over-year gross sales progress and continued sturdy profitability. When it comes to product combine for the quarter, our fireplace service class continues to extend as a share of Lakeland gross sales and represented 18% of the full income for the quarter in comparison with 12.5% within the yr in the past interval.
Disposables proceed to lower as a share of Lakeland gross sales and represented 38% of whole revenues in comparison with 50% within the yr in the past interval. This displays the efforts we’ve made to shift our product combine in direction of greater worth, greater margin and fewer commoditized merchandise, as we now have mentioned in prior calls, in addition to continued weak spot for this product line in Asia.
For the fiscal year-to-date, our fireplace service enterprise is 21.4% of gross sales and disposables are 39%. From a section reporting standpoint, Lakeland noticed sturdy gross sales progress in our U.S., European, Canadian and Latin American markets. This progress was partially offset by softer Asian gross sales, notably in China, which is a continuation of what we’ve seen over the previous few quarters.
For the present quarter, gross sales within the U.S. had been $15.1 million or 48% of whole income, a rise of $1.1 million over the yr in the past interval. Latin American gross sales grew $1.6 million to $4.2 million within the present quarter, a rise of 63% over Q3 of final yr. All geographic areas apart from Asia confirmed will increase over the yr in the past interval. As a result of inherent timing variability in our fireplace service enterprise on account of the timing of deliveries on massive tenders, we now have begun extra carefully monitoring our trailing 12-month, or TTM, income.
For the 12 months ended October 31, 2023, our TTM income was $122.4 million, a rise of $11.8 million or 11% over the trailing 12 months ended October 31, 2022. Gross revenue for Q3 of this quarter was $13.4 million, a rise of $1.1 million or 9% over the yr in the past interval. Gross revenue as a share of web gross sales was 42.2% for the fiscal 2024 This autumn, as in comparison with 43.3% a yr in the past. Gross revenue efficiency within the present interval was pushed by elevated income in the course of the quarter, together with gross sales of beforehand reserved extra stock, partially offset by an adjustment for intercompany revenue in ending stock.
Our gross margin share was affected by an adjustment for intercompany revenue and ending stock and amortization of earlier yr changes to extra stock, partially offset by improved product combine, decrease freight price, manufacturing price enhancements and the discount of whole stock, together with totally and partially reserved stock.
Lakeland reported working revenue of $3.6 million in Q3 of ’24 as in comparison with $2.1 million within the third quarter of final yr. In consequence, working margins had been 11.4% within the third quarter, up from 7.6% within the third quarter of final yr. Our working revenue benefited from will increase in gross sales and decrease working bills in the course of the third quarter. The corporate evaluated the earn-out consideration accrual associated to the Eagle acquisition and lowered this accrual by $1.5 million, which was recorded as a discount in working expense within the quarter.
This lower was offset by will increase in foreign money fluctuations of $700,000, primarily associated to the Argentine peso. Moreover, greater associated — greater sales-related prices, together with will increase in journey and commerce present bills, had been realized as we proceed to spend money on progress initiatives throughout the corporate. Lakeland delivered web earnings of $2.6 million or $0.35 per primary share and $0.34 per diluted share in the course of the quarter.
This compares to web earnings of $1.4 million or $0.19 per primary and diluted share within the prior yr interval. Adjusted EBITDA was $3.3 million in Q3 ’24, a rise of 10.8% in comparison with $3 million in Q3 of ’23. Adjusted EBITDA efficiency within the quarter was pushed by greater gross sales, partially offset by the impression of the beforehand talked about destructive FX impacts in working bills.
Our adjusted EBITDA margin for Q3 of fiscal 2024 was 10.4% in comparison with the identical quantity within the yr in the past interval. Adjusted for the impression of destructive FX within the quarter, our adjusted EBITDA would have been roughly 14.2% within the present quarter. On a trailing 12-month foundation, Lakeland’s adjusted EBITDA of $12.1 million is a rise of 21.2% versus the TTM adjusted EBITDA of $9.9 million as of October 31, 2022.
Now turning to the stability sheet. Lakeland ended the quarter with money and money equivalents of roughly $26.4 million, a rise of $1.8 million in comparison with our prior year-end money stability of $24.6 million. Lakeland delivered money stream from operations in the course of the quarter of $3.8 million, pushed by worthwhile operations and a $2.6 million discount of uncooked supplies and completed items stock.
Yr-to-date, we now have produced optimistic working money stream of $7.7 million, led by worthwhile operations and a $3.2 million lower in stock. Offsetting the working money flows had been $3 million in investing actions cut up between capital tools and extra funding in physique monitor. Financing actions for the fiscal year-to-date, primarily quarterly dividends, U.Ok. financial institution repayments and treasury inventory purchases totaled $1.8 million.
Lastly, money balances have been impacted by $1.1 million in the course of the year-to-date on account of foreign money fluctuations, primarily from the Chinese language yuan and Argentine peso. The corporate continued to haven’t any debt on the finish of the quarter and has as much as $25 million accessible from financial institution credit score amenities. Capital expenditures for the three months at October 31, 2023, had been $400,000 and $1.5 million year-to-date. As a reminder, we now count on CapEx to be roughly $2 million for the complete fiscal yr as we exchange current tools within the regular course of operations.
The Monterrey enlargement, which we mentioned final quarter, stays on pause as we proceed to evaluate weather-related injury to our leased constructing. Inventories declined $3 million quarter-over-quarter to $54.4 million from $57.4 million on the finish of the second quarter of fiscal ’24. We had been happy to see the acceleration of stock discount within the quarter, and this stays a prime working goal.
Throughout the quarter, we utilized varied gross sales and advertising applications in addition to value deviations on reserved stock to help this effort, and we are going to proceed to take action shifting ahead. In closing, I’d wish to briefly focus on 2 transactions that occurred subsequent to quarter finish and their impression on Lakeland’s monetary profile. First is the acquisition of New Zealand-based Pacific Helmets for $8.5 million, topic to post-closing changes and customary holdback provisions, which Jim already lined intimately.
The transaction was funded via the corporate’s revolving credit score facility and money balances. We count on Pacific so as to add $7 million to $8 million of gross sales income to Lakeland in our subsequent fiscal yr and for the corporate to be instantly accretive to Lakeland’s backside line outcomes. Subsequent is the sale of the corporate’s Brantford, Ontario warehouse. On November 27 of 2023, the corporate offered its workplace and warehouse facility in Brantford, Ontario to an unrelated get together for $4.9 million. This sale will end in a pretax acquire after promoting bills roughly $3.8 million that can be acknowledged within the fourth quarter of this yr. Going ahead, the corporate will make the most of third-party logistics suppliers for buyer achievement in Canada.
Lastly, on November 30, 2023, we entered into Modification quantity 3 to the mortgage settlement with Financial institution of America. On this third modification, the lender consented to our acquisition of the fairness curiosity of Pacific and to allow further indebtedness to be made accessible on Pacific by its current financial institution relationships. The modification additionally waived Lakeland’s borrowing base limitations via January 31, 2024.
With that overview, I’d now like to show the decision over to the operator to open the decision up for questions.
Query-and-Reply Session
Operator
[Operator Instructions] Your first query for right now is coming from Gerry Sweeney with ROTH Capital.
Gerry Sweeney
Simply a few fast questions. Clearly, fireplace service is doing fairly nicely, and there’s a whole lot of discuss moving into distributors. Simply curious, is the hearth — are the hearth gear merchandise in all of your distributors that you just at present wish to be in? Or is there a chance to get into extra which means? When you’ve got some relationships with distributors, are all of them in these distributors that you’ve relationships with, not new ones? I’m assuming typically it’s simpler to get into current relationships increasing
Jim Jenkins
I feel it’s a mix of — sure, I do. I feel it’s a mix of each at this level, Gerry. And specifically, with our North American gross sales group, they’ve accomplished an incredible job of creating further distribution preparations. And we’re — we’ve not too long ago employed any person within the West Coast to assist additional increase these relationships. So we’ve seen what I might take into account greater than modest success in creating our present distribution community but additionally increasing it.
And I give kudos to our North American gross sales group — the hearth gross sales group, specifically, for that. After which, in fact, on the Eagle entrance, we’ve inherited a whole lot of relationships from them as they search bidding alternatives all through the world. And positively, with Pacific Helmet, we’ll see beneficiary of some very sturdy APAC distributor relationships that they’ve. And you then form of do the cross-selling with that, and I get actually enthusiastic about it as a result of there’s all types of alternatives that we’d have needed to associate with another person to try this now we don’t have to try this as a result of we’ve bought it — we’ve bought that service and product providing in-house.
Gerry Sweeney
Bought it. I imply I don’t wish to put phrases in your mouth, however form of what I’m taking a look at it’s distribution progress has been nice. It seems like there’s nonetheless alternatives there, however you’re taking your fireplace turnout right here, Eagle, Pacific Helmet, there’s you’ll be able to layer on further cross-selling alternatives and perhaps even get into further distributors completely different areas of the world. So nonetheless some low-hanging fruit perhaps on the distributor set?
Jim Jenkins
Sure. Look, I stay — sure, I feel that’s — and also you’re not placing phrases in my mouth. I feel that’s proper. And I feel we really feel we’re within the early levels of rising out this chance. And given the sure aggressive benefits we now have, definitely on our form of captive manufacturing, the extra product traces that we provide, sure, that is — in a 9-inning sport, I feel we’re at about second inning.
Gerry Sweeney
All proper. That’s very useful. After which, clearly, perhaps acquisitions, proper? Completely Pacific Helmets completely is sensible. Are there different alternatives on the market that you’d be searching for that form of add — I don’t know whether or not it’s the hearth gear or another areas that simply add this cross-selling alternative?
Jim Jenkins
Sure. I imply we see alternatives in industrials and in fireplace. Fireplace is the place we form of discovered the low-hanging fruit. We’d like to spherical — we wish to spherical out our fireplace providing with different doable merchandise. So I’m definitely all in favour of that. And when it comes to the pipeline, I imply, for anyone’s profit on the decision, my background is I actually have been shifting on a strategic plan for Transcat within the M&A circles the place we now have just about accomplished what we’re making an attempt to do at Lakeland, proper?
And as I have a look at the two corporations, there’s a lot of similarities there about alternatives that we will transfer the needle with out betting the farm, proper? Pacific was an $8.5 million deal, we’re going to get it proper. I do know we’re going to get it proper. But when we solely get it a bit of proper, we’re going to be effective. Actually, we’re going to be higher than effective.
Gerry Sweeney
Bought it. Sure, definitely — sorry, go forward.
Jim Jenkins
Sure, go forward.
Gerry Sweeney
I used to be going to say, Transcat, you completely expanded the addressable market, proper, via the asset administration facet. In order that’s form of what I’m seeing right here.
Jim Jenkins
Precisely.
Gerry Sweeney
Sure. Bought it. Perhaps simply a few fast questions on disposables. The place does this go when it comes to share of income? I think about there’s at all times some element of gross sales for disposables however some wants. And I’m simply curious if it’s much less vital that there’s much less differentiation, et cetera, however I’m questioning the place that goes long run? After which perhaps simply discuss the place stock — perhaps a proper stock degree needs to be when it comes to {dollars} on a — perhaps a continuing foundation, I do know it’s going to vary over time, however I feel
Jim Jenkins
So within the curiosity of not making myself a idiot, I’m going to have Roger reply that one.
Roger Shannon
Sure, I might simply level out that beneath Jim’s and the Board’s management, we now have spent a whole lot of effort and time over the course of the summer time and the autumn. And naturally, I joined in February 1 of this yr sort of taking a look at our technique, strategic course, how we compete and the place we expect we now have aggressive benefits. In fact, we now have talked about the advantages that in-house manufacturing brings. We don’t wish to give the message in any respect that we’re minimizing disposables.
Disposables, regardless that it’s all the way down to 38% or so of the full income, that’s as a result of different income is rising along with, in fact, the weak spot in China that we’ve seen. However as we take into consideration disposables, we don’t wish to give the message or the angle, the disposables will not be strategic. Now there are some locations the place it doesn’t make sense to compete in disposables the place we don’t suppose we now have aggressive benefit and we don’t wish to race to the underside on pricing there.
However as we take into consideration what’s strategic and the way finest to the place we now have benefits, there are disposable merchandise that we’re very enthusiastic about and we’re going to proceed to leverage. And a few issues particularly that come to thoughts, and we talked about this a bit final quarter is the clear room functions. Clear rooms, it’s not simply your primary run the mill, low degree disposable merchandise, we see alternatives in semiconductor EV, continued in well being care and the Lakeland model and the product there is superb.
The opposite, we alluded to this a bit in our ready remarks is our bigger distributor direct-to-customer container program. And we noticed a tick in that. This quarter, once more, our massive buyer gross sales drive is doing an awesome job. And what that allows us to do is sort of strategically use sure disposable merchandise to fill out a container that we ship on to the shopper. It’s higher margin and price profile for us as a result of we’re not dealing with it and it ends in extra gross sales as a result of they will go to at least one place, one cease and sort of get the complete vary of wants that fill out the container the products shipped to them.
So whereas we see probably the most progress — probably the most accelerated progress and progress percentages in fireplace and particularly from an M&A perspective in fireplace service and likewise in industrial, the disposables because it pertains to issues like important atmosphere, clear room and direct-to-customer container applications is taken into account extremely strategic for us.
Gerry Sweeney
Bought it. Understood.
Jim Jenkins
And I didn’t imply —
Gerry Sweeney
Disposable go all the way in which, however I — that’s an awesome overview.
Roger Shannon
And I’d simply add, it’s sort of laborious — gotten the query, it’s laborious to say what you suppose the share goes to be It will get all the way down to what the — once you see China restoration on one hand and then again, what the acquisitions seem like as a result of the acquisitions are going to be sometimes within the fireplace or the upper worth industrial. In order that income channel would simply count on it to develop quicker.
Gerry Sweeney
Understood. Sure. And I’m sorry, I didn’t imply to suggest that it was going to utterly go away, however what — I perceive what you’re saying. There’s definitely —
Roger Shannon
No, no, we didn’t take it that manner. It’s simply you alternative to sort of make it clear how we take into consideration disposables.
Jim Jenkins
And in a whole lot of methods, it’s math, proper? A whole lot of methods, it’s math, Gerry, proper? I imply as we proceed to develop the upper worth and we proceed — and we transfer — proceed — we don’t abandon in any manner, secure carry out the disposable market, however it’s simply as a share of our portfolio, we simply form of naturally get a bit of bit smaller, which I don’t suppose
Gerry Sweeney
What — and this — little housekeeping extra for modeling, however the place do you wish to get stock ranges down? I feel all issues being equal, proper. You’re going to develop — you’re persevering with to develop, et cetera. However simply curious as to what degree
Roger Shannon
Gerry, I’ll take that one as nicely. And once more, it’s — what manner we’ll must sort of consider is the caveat is that we’re beginning to do the acquisition accounting on Pacific. We are going to bringing that in. So that may have an effect on the stock stability. Like — sort of like Eagle, like our fireplace merchandise, these are made to order. So there’s not going to be important, if any, completed items that come together with Pacific.
However in fact, they’ve the uncooked supplies and the work in course of. That stated, we now have been very happy at how we had been in a position to scale back the — name it, the — what I’ve roughly circled up is the $58 million of stock all the way down to the $54 million degree. As I take into consideration that baseline, we want to get one other $2 million to $4 million out of that. It’s like
Gerry Sweeney
So that you’re fairly shut, sure.
Roger Shannon
Sure. So now we nonetheless have — it’s a name we nonetheless have weekly. We have now targets and applications underway, and it’s nonetheless very a lot a excessive precedence. And you’ll see the money stream that’s resulted in in the course of the quarter.
Gerry Sweeney
Bought it. I admire.
A –Jim Jenkins
And I’ll simply add on that simply briefly, and that’s actually a testomony to Roger and his group, our COO, Helena and her group, they actually have labored collectively on – and our gross sales group on forecasting and driving down that stock quantity. And it’s turn out to be a major precedence for us. And beneath Roger’s management, we’re beginning to see some actual encouraging outcomes.
Operator
We have now reached the top of the question-and-answer session. And I’ll now flip the decision over to Jim for closing remarks.
Jim Jenkins
Thanks, operator. Thanks all for becoming a member of us on right now’s name. We admire your continued curiosity in Lakeland. The worldwide progress alternatives for our enterprise are sturdy, and we look ahead to constructing on the sturdy momentum Lakeland has constructed and sharing our successes with you in fiscal 2024. Have an awesome day.
Operator
This concludes right now’s convention, and chances are you’ll disconnect your traces presently. Thanks to your participation.
