By Connor Hart

UniFirst logged higher profit and revenue in its fiscal third quarter and said costs tied to ongoing initiatives are likely to come in below expectations.

The uniform supplier on Wednesday posted net income of $39.7 million for its 13 weeks ended May 31, compared with net income of $38.1 million in last year's comparable quarter.

Quarterly earnings came in at $2.13 a share, topping the $2.10 a share that analysts surveyed by FactSet expected.

UniFirst said the recent quarter included approximately $1 million of costs directly attributable to its customer-relationship-management computer system and enterprise-resource-planning projects. These charges caused net income to decrease by about $700,000, and for earnings per share to decrease by 4 cents. Such efforts dragged on fiscal third-quarter results last year as well.

Revenue ticked up by 1.2%, to $610.8 million, but missed the $614.8 million that Wall Street modeled.

"It is rewarding to see our recent investments beginning to yield measurable returns, evidenced by gross margin improvement and more effective execution across the business," Chief Executive Steven Sintros said.

Looking forward, the Wilmington, Mass., company raised its per-share earnings outlook for the year to between $7.60 and $8 from the prior range of $7.30 to $7.70. The company backed its revenue outlook of $2.42 billion to $2.43 billion.

Sintros said the improved earnings outlook reflects lower expected costs for its systems projects, now pegged at about $7.5 million for the year, down from an earlier estimate of $12 million.

Analysts are looking for earnings of $7.89 a share on revenue of $2.43 billion.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

July 02, 2025 08:36 ET (12:36 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.