Vestis Corporation (VSTS) experienced a pre-market plunge of 5.18% on Friday, following the release of its fiscal Q1 2025 earnings results. The uniform and workplace supplies provider reported mixed financials, with earnings slightly beating expectations but revenue falling short of estimates.
For the quarter ended December 27, 2024, Vestis reported adjusted earnings of $0.14 per share, down from $0.22 a year earlier but slightly above the consensus estimate of $0.13. However, revenue declined to $683.8 million from $717.9 million in the prior-year quarter, missing analysts' expectations of $688.9 million.
The company reiterated its fiscal 2025 revenue guidance range of $2.80 billion to $2.83 billion, implying flat growth compared to the previous year. This sluggish growth outlook, coupled with the revenue miss, appeared to disappoint investors, leading to the pre-market sell-off in Vestis shares.
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