Vestis Corporation (VSTS) saw its stock plummet 9.23% in pre-market trading, following the release of its mixed fourth-quarter earnings report and the announcement of a strategic business transformation plan.

The company reported adjusted earnings of $0.03 per share, missing the analyst consensus estimate of $0.06 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 restructuring plan expected to cost between $25 million and $30 million, with projected fiscal 2026 revenue to be flat or down 2%.

The combination of weaker-than-expected earnings, high restructuring costs, and a cautious revenue outlook led to a sharp sell-off in Vestis shares during pre-market trading.