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Stockholders' Equity
 6 Months Ended
Jul. 31, 2025
STOCKHOLDERS EQUITY  
Stockholders' Equity
9
.
Stockholders’ Equity
On June 21, 2017, the stockholders of the Company approved the Lakeland Industries, Inc. 2017 Equity Incentive Plan (the “2017 Plan”). The executive officers and all other employees and directors of the Company, including its subsidiaries, are eligible to participate in the 2017 Plan. The 2017 Plan is administered by the Compensation Committee of the Board of Directors (the “Committee”), except that with respect to all
non-employee
directors, the Committee shall be deemed to include the full Board. The 2017 Plan provides for the grant of equity-based compensation in the form of stock options, restricted stock, restricted stock units, performance shares, performance units, or stock appreciation rights (“SARs”).
An aggregate of 1,240,000 shares of the Company’s common stock are currently authorized for issuance under the 2017 Plan, as amended, subject to adjustment as provided in the 2017 Plan for stock splits, dividends, distributions, recapitalizations and other similar transactions or events. If any shares subject to an award are forfeited, expire, lapse or otherwise terminate without issuance of such shares, such shares shall, to the extent of such forfeiture, expiration, lapse or termination, again be available for issuance under the 2017 Plan.
The Company recognized total stock-based compensation costs, which are reflected in operating expenses (in $000’s):
 
     Three Months Ended
July 31,		      Six Months Ended
July 31,		  
     2025      2024      202
5
      202
4
  
2017 Plan:      
 
 
 
      
Total restricted stock and stock option programs    $ 1,411      $ 428      $ 1,740      $ 627  
Total income tax expense recognized for stock-based compensation arrangements
    $ 296      $ 90      $ 365      $ 132  
  
 
 
     
 
 
     
 
 
     
 
 
  
Restricted Stock and Restricted Stock Units
Under the 2017 Plan, as described above, the Company awarded performance-based and service-based shares of restricted stock and restricted stock units to eligible employees and directors. The following table summarizes the activity under the 2017 Plan for the six months ended July 31, 2025 and 2024, respectively. The tables below reflect the amount of awards granted and the number of shares that would be vested if the Company were to achieve the maximum performance level under the then-outstanding grants.
Changes in performance-based and service-based shares outstanding during the six months ended July 31, 2025 are as follows:
                                         
 
  
Performance-
Based
 
 
Service-
Based
 
 
Unrestricted
Stock
Awards
 
 
Total
 
 
Weighted
Average
Grant Date
Fair Value
 
Outstanding at January 31, 2025
  
 
69,670
 
 
 
182,135
 
 
 
— 
 
 
 
251,805
 
 
$
17.36
 
Awarded
  
 
265,874
 
 
 
127,076
 
 
 
27,258
 
 
 
420,208
 
 
$
16.12
 
Vested
  
 
(3,304
) 
 
 
(31,393
) 
 
 
(27,258
) 
 
 
(61,955
) 
 
$
16.18
 
Forfeited
  
 
(29,485
) 
 
 
(16,801
) 
 
 
— 
 
 
 
(46,286
) 
 
      
Outstanding at July 31, 2025
  
 
302,755
 
 
 
261,017
 
 
 
— 
 
 
 
563,772
 
 
$
17.62
 
 
Changes in performance-based and service-based shares outstanding during the six months ended July 31, 2024 are as follows:
 
     Performance-
Based		      Service-
Based		      Total      Weighted
Average
Grant Date
Fair Value		  
Outstanding at January 31, 2024
      82,330        112,890        195,220      $ 16.61  
Awarded
      27,042        112,256        139,298      $ 19.18  
Vested
      —         (39,062 )       (39,062 )     $ 20.27  
Forfeited
      (4,281 )       (14,234 )       (18,515 )    
Outstanding at July 31, 2024
      105,091        171,850        276,941      $ 17.08  
For performance-based awards granted in FY23, FY24 and FY25, the actual number of shares of common stock of the Company, if any, to be earned by the award recipients is determined over a three-year performance measurement period based on measures determined in advance by the Compensation Committee of the Board of Directors of the Company. For the 2022 grants, the performance measures include Earnings Before Interest Taxes Depreciation and Amortization (“EBITDA”) margin, revenue growth, and return on invested capital. Performance measures for the 2023 grants are revenue growth, EBITDA margin and return on invested capital. The performance measures for the April 2024 grants are aggregate revenue during FY25, FY26, and FY27, EBITDA margin and free cash flow margin.
With respect to performance-based awards granted in May 2025, the performance measures are the Company’s total revenue, the Company’s fire segment revenue, and its adjusted EBITDA. Each of these metrics will be independently measured against Minimum, Target, and Maximum performance targets established by the Compensation Committee, against which the Company’s performance will be measured on an annual basis at the end of each fiscal year beginning January 31, 2029 through January 31, 2031. With respect to performance-based awards granted in July 2025, the performance measures are annual revenue, adjusted EBITDA, free cash flow margin, and individual executive goals.
For all performance-based awards, the performance targets have been set for each of the Minimum, Target, and Maximum levels. The actual performance amount achieved is determined by the Compensation Committee and may be adjusted for items determined to be unusual in nature or infrequent in occurrence, at the discretion of the Compensation Committee.
The compensation cost is based on the fair value at the grant date, is recognized over the requisite performance/service period using the straight-line method and is periodically adjusted for the probable number of shares to be awarded. As of July 31, 2025, unrecognized stock-based compensation expense totaled $8.0 million pursuant to the 2017 Plan based on outstanding awards under the Plan. This expense is expected to be recognized over approximately three years.
Stock Repurchase Program
On April 7, 2022, the Board of Directors authorized a stock repurchase program under which the Company may repurchase up to $5.0 million of its outstanding common stock, which became effective upon the completion of a prior share repurchase program. On December 1, 2022, the Board of Directors authorized an increase in the Company’s stock repurchase program, under which the Company may repurchase up to an additional $5.0 million of its outstanding common stock.
No shares were repurchased during Q2 FY26, leaving $5.0 million remaining under the share repurchase program at July 31, 2025. The share repurchase program has no expiration date but may be terminated by the Board of Directors at any time.