Vestis Corporation reported a revenue of $659.4 million for the three months ended April 3, 2026, a slight decrease of 0.9% compared to $665.2 million for the same period in the previous year. The decline was attributed to a $10.5 million drop in uniform sales, partially offset by a $4.7 million increase in workplace supplies. For the six months ended April 3, 2026, total revenue was $1.32 billion, down 1.9% from $1.35 billion in the prior year. The company recorded a net income of $2.6 million for the latest quarter, a significant turnaround from a net loss of $27.8 million in the same quarter last year, driven by reduced operating expenses and improved operational efficiency.
Operating expenses for the three months decreased by 6.1% to $632.7 million, primarily due to a 24.1% reduction in selling, general, and administrative expenses, which fell to $112.3 million from $147.9 million. This reduction was largely a result of headcount reductions and cost-saving measures implemented as part of a multi-year business transformation plan initiated in the first quarter of fiscal 2026. The plan aims to enhance operational efficiency and is expected to generate annual cost savings of at least $75 million by the end of fiscal 2026.
In terms of operational metrics, Vestis reported a significant increase in operating income, which rose to $26.8 million from a loss of $8.6 million in the prior year, marking a 412.5% improvement. The company also noted a decrease in interest expenses, which fell to $21.1 million from $22.3 million, contributing to the overall positive financial performance. The effective tax rate for the latest quarter was recorded at -3.4%, compared to 18.6% in the previous year, reflecting the changes in earnings.
Vestis continues to focus on its strategic priorities, including operational excellence and commercial initiatives, to improve customer retention and profitability. The company is also undergoing a restructuring plan that involves streamlining its organizational structure and optimizing its asset network. As of April 3, 2026, Vestis had approximately $50.3 million in cash and cash equivalents, with no outstanding borrowings on its revolving credit facility, indicating a stable liquidity position.
Looking ahead, Vestis remains cautious about macroeconomic conditions, including inflationary pressures and geopolitical instability, which could impact operational costs and customer spending. The company is committed to executing its transformation plan and expects to complete it by the end of fiscal 2027, with ongoing assessments of its financial performance and market conditions to guide future strategies.
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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