Lakeland Industries (LAKE) Traded Down Due to Delayed Orders And Tariff Disruptions

Rewey Asset Management, an investment management company, released its “RAM Smid Composite” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The composite increased 6.11% in Q2 2025, slightly trailing a 7.29% gain for the benchmark Russell 2500 Value Total Return Index. Year-to-date, the composite returned -1.29% vs. 1.03% for the benchmark. The firm views the quarter as in line and has confidence in the Smid value sector as it approaches the second half of 2025. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Rewey Asset Management highlighted stocks such as Lakeland Industries, Inc. (NASDAQ:LAKE). Lakeland Industries, Inc. (NASDAQ:LAKE) manufactures and sells industrial protective clothing and accessories. The one-month return of Lakeland Industries, Inc. (NASDAQ:LAKE) was -2.86%, and its shares lost 28.32% of their value over the last 52 weeks. On September 12, 2025, Lakeland Industries, Inc. (NASDAQ:LAKE) stock closed at $14.63 per share, with a market capitalization of $139.199 million.

Rewey Asset Management stated the following regarding Lakeland Industries, Inc. (NASDAQ:LAKE) in its second quarter 2025 investor letter:

"Lakeland Industries, Inc. (NASDAQ:LAKE) was our weakest performer in 2Q25, declining 31.40% following a soft FY1Q26 report with revenue and earnings below expectations due to delayed orders and tariff disruptions. We believe the market overreacted and remain optimistic about LAKE’s prospects. The company is in the early stages of transitioning to a full-service provider of firefighter gear and is expected to improve margins through the integration of recent acquisitions and the fulfillment of delayed orders. Tariff impacts should be mitigated by shifting production to favorable regions, including USMCA-covered facilities. We increased our position on the price weakness during the quarter."

Lakeland Industries, Inc. (NASDAQ:LAKE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 11 hedge fund portfolios held Lakeland Industries, Inc. (NASDAQ:LAKE) at the end of the second quarter, compared to 14 in the previous quarter. While we acknowledge the potential of Lakeland Industries, Inc. (NASDAQ:LAKE) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Lakeland Industries, Inc. (NASDAQ:LAKE) and shared the list of promising smallcap stocks under $1 billion in market capitalization. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.