Vestis Corporation (VSTS) saw its stock plummet 12.38% during Tuesday's intraday trading session, marking one of its worst single-day performances in recent history. The sharp decline followed the company's mixed fourth-quarter earnings report and the announcement of a costly strategic business transformation plan.

The company reported adjusted earnings of $0.03 per share, missing analyst estimates by 47.37% and representing a 72.73% decline from the same period last year. While revenue of $712.01 million beat expectations, the earnings shortfall and a net loss of $13 million for the quarter weighed heavily on investor sentiment. Vestis also unveiled a multi-year restructuring plan expected to cost $25-30 million, with projected annual savings of $75 million by 2026. The company's cautious revenue outlook for fiscal 2026 (flat to -2% growth) further dampened market confidence.

The combination of weaker-than-expected earnings, significant restructuring costs, and a subdued revenue forecast created a perfect storm for Vestis shares, leading to the double-digit percentage drop. Investors appear concerned about the company's near-term profitability and the execution risks associated with its transformation plan.