Vestis Corporation Reports Decline in Revenue and Net Loss for Q3 and Nine Months of Fiscal 2025

Vestis Corporation reported a decline in financial performance for the third quarter and first nine months of fiscal 2025, as detailed in its latest 10-Q filing. For the three months ended June 27, 2025, the company generated revenue of $673.8 million, a decrease of 3.5% from $698.2 million in the same period last year. The decline was attributed to a $18.6 million drop in uniform sales and a $5.8 million decrease in workplace supplies. The net loss for the quarter was $676,000, compared to a net income of $5.0 million in the prior year, reflecting a significant shift in profitability.

Over the nine-month period, Vestis reported total revenue of $2.02 billion, down 4.7% from $2.12 billion in the previous year. The company experienced a $98.7 million decline in revenue, primarily due to an $82.0 million decrease in uniform sales and a $16.7 million drop in workplace supplies. The net loss for the nine months was $27.7 million, a stark contrast to the net income of $23.3 million reported for the same period in 2024. The company noted that fluctuations in foreign exchange rates negatively impacted revenue by approximately $6.2 million.

In terms of operational changes, Vestis has been focusing on cost management, which resulted in a 1.8% reduction in total operating expenses for the quarter. Selling, general, and administrative expenses decreased by 6.0%, primarily due to lower share-based compensation and reduced administrative costs. However, the company also recorded a significant increase in bad debt expense, which rose by $19.5 million, reflecting challenges in customer collections and an adjustment to the allowance for credit losses.

Vestis continues to navigate a challenging market environment, influenced by macroeconomic factors such as inflation and supply chain disruptions. The company has amended its credit agreement to increase its net leverage ratio, allowing for greater financial flexibility. As of June 27, 2025, Vestis had $23.7 million in cash and cash equivalents, with $266.3 million available under its revolving credit facility. The company is focused on stabilizing its operations and improving its financial performance in the coming quarters, although it acknowledges the uncertainty surrounding market conditions and customer demand.