Vestis Corporation (NYSE: VSTS) saw its stock plummet 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%. While quarterly sales of $712.01 million beat estimates, 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, aimed at improving operational efficiency. The company anticipates fiscal 2026 revenue to be flat or down 2%, further dampening market confidence.