TrueBlue, Inc. reported a significant decline in financial performance for the fiscal year ending December 29, 2024, with total revenue falling 17.8% to $1.57 billion, down from $1.91 billion in the previous year. The company attributed this decrease to ongoing labor market uncertainty, which led clients to reduce their reliance on contingent labor and to utilize existing workforce resources to cut costs. The additional week in fiscal 2023 contributed $20.3 million to revenue, highlighting the impact of the shorter fiscal year on the current results. The gross profit margin also contracted, decreasing to 25.9% from 26.5% in the prior year, primarily due to a shift in revenue mix towards lower-margin staffing services and pricing pressures.
In terms of segment performance, the PeopleReady segment, which provides general and skilled labor staffing, saw revenue decline by 20.8% to $868.5 million. PeopleScout, focused on recruitment process outsourcing, experienced a 31.7% drop in revenue to $156.6 million, largely due to reduced hiring volumes and the loss of a major client. Conversely, the PeopleManagement segment reported a smaller revenue decline of 6.6%, totaling $542.2 million, supported by growth in its commercial driving business. The overall net loss for the year was $125.7 million, a significant increase from the prior year's loss of $14.2 million, driven by a $59.7 million goodwill impairment charge related to the PeopleReady reporting unit.
Strategically, TrueBlue has been focusing on digital transformation and expanding into high-growth markets. The company launched a new version of its JobStack mobile app, enhancing the user experience for both clients and associates. Additionally, TrueBlue announced the acquisition of Healthcare Staffing Professionals, Inc. for $42 million, aimed at bolstering its presence in the healthcare staffing sector. This acquisition is expected to contribute to future revenue growth, although it was funded through a $35 million draw from the company's revolving credit facility.
Operationally, TrueBlue connected approximately 336,000 individuals with work and served around 55,000 clients during the fiscal year. The company employed approximately 4,200 full-time equivalent employees as of December 29, 2024. The staffing industry remains highly competitive, with TrueBlue facing challenges from both traditional staffing firms and emerging online platforms. The company continues to invest in technology to enhance its service delivery and maintain its competitive edge.
Looking ahead, TrueBlue anticipates a continued decline in revenue for the first quarter of fiscal 2025, projecting a decrease between 13% and 7% compared to the same period in the prior year. The company expects gross profit margins to decline slightly and plans to manage selling, general, and administrative expenses between $93 million and $97 million. TrueBlue's management remains focused on navigating the current economic landscape while pursuing growth opportunities in less cyclical markets.
About TrueBlue, Inc.
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