Vestis Corporation (VSTS) saw its stock drop 5.33% in after-hours trading following the release of its mixed fourth-quarter earnings report and the announcement of a strategic restructuring plan.
The company reported adjusted earnings of $0.03 per share, missing the analyst consensus estimate of $0.06 by 47.37%. This represents a 72.73% decline from the same period last year. While revenue of $712.01 million beat estimates, the earnings shortfall and a net loss of $13 million for the quarter weighed on investor sentiment.
Vestis also unveiled a multi-year restructuring plan aimed at improving commercial and operational excellence, with expected costs of $25-30 million. The company projected fiscal 2026 revenue to be flat or down 2%, further dampening market confidence.