Vestis Corporation reported a revenue of $663.4 million for the three months ended January 2, 2026, a decrease of 3.0% from $683.8 million in the same period the previous year. The decline was primarily attributed to a $19.2 million drop in uniform sales and a $1.2 million decrease in workplace supplies, despite consistent overall volume levels. The company experienced a net loss of $6.4 million, compared to a net income of $0.8 million in the prior year, reflecting a significant shift in profitability due to changes in revenue and operational costs.
Operating income fell sharply by 45.5% to $16.6 million from $30.4 million year-over-year. This decline was influenced by a combination of factors, including a decrease in revenue and an increase in operational costs, particularly in plant operations. Selling, general, and administrative expenses also saw a slight reduction, down 0.8% to $120.3 million, driven by headcount reductions and cost-saving measures, although this was partially offset by $7.8 million in transformation costs related to a new multi-year restructuring plan aimed at enhancing operational efficiency.
In terms of strategic developments, Vestis initiated a business transformation and restructuring plan during the first quarter of fiscal 2026, with an estimated cost of $25 million to $30 million. The plan is expected to generate annual operating cost savings of at least $75 million by the end of fiscal 2026. The company has also been focusing on optimizing its asset and network utilization, which includes reallocating equipment to higher-utilization markets and making targeted capital investments.
Operationally, Vestis reported a slight increase in cash and cash equivalents, totaling $41.5 million as of January 2, 2026, compared to $29.7 million at the end of the previous fiscal period. The company’s total principal debt decreased to $1.16 billion from $1.17 billion, reflecting ongoing efforts to manage its financial obligations. Vestis also reported a significant improvement in cash flow from operating activities, which rose to $37.7 million from $3.8 million year-over-year, indicating better management of working capital and collections.
Looking ahead, Vestis remains cautious about the macroeconomic environment, including inflationary pressures and supply chain disruptions, which could impact future performance. The company is focused on executing its transformation plan and improving operational efficiencies to navigate these challenges. The management anticipates that the restructuring efforts will position Vestis for sustainable growth and profitability in the coming years.
About Vestis Corp
Vestis Corporation provides uniform rental and workplace supplies, including linens, mats, towels, restroom and safety products, primarily serving industries such as manufacturing, healthcare, hospitality, retail, and automotive across the U.S. and Canada. With a broad network of facilities and long-term customer relationships, it offers comprehensive, recurring services that enhance operational efficiency, safety, and brand image, leveraging scale, logistics, and a performance-driven culture to deliver value.
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