By Emon Reiser
Shares of Vestis climbed after the workplace supplies and uniform rental company guided for 5% adjusted Ebitda growth in the quarters ahead as it reduces its operating expenses.
The stock rose 22% to $8.94 a share in midday trading on Tuesday. Shares are up 34% year to date.
Vestis ahead of the market open reported a loss of $6.4 million, or 5 cents a share for the quarter-ended Jan. 2, compared with a profit of $832,000, or 1 cent a share, in the year ago period.
After accounting for one-time items, Vestis reported 10 cents in adjusted earnings per share. Analysts polled by FactSet expected 6 cents a share.
Revenue fell to $663.4 million, compared with $683.8 million in the year-ago quarter. Analysts expected $664.2 million.
Vestis guided for adjusted Ebitda for the full year in the range of $285 million and $315 million, with 5% successive quarterly improvements beginning in the second quarter. Full-year revenue is expected to be flat to down 2%.
"In the first quarter, we saw a $0.02 improvement in cost per pound over fiscal Q1 2025, which translates to roughly $10 million in adjusted Ebitda at our current volume," Chief Executive Jim Barber said on a call with analysts. "We expect to see continued improvement in this trend throughout the year."
Write to Emon Reiser at emon.reiser@wsj.com
(END) Dow Jones Newswires
February 10, 2026 12:30 ET (17:30 GMT)
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