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 business transformation 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 by 4.97%, the significant earnings miss 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 operational efficiency, with expected costs of $25 million to $30 million. The company anticipates annual cost savings of $75 million by 2026 but provided a cautious revenue outlook for fiscal 2026, projecting flat to a 2% decline.