Core Viewpoint - A class action securities lawsuit has been filed against Vestis Corporation, alleging securities fraud that negatively impacted investors between May 2, 2024, and May 6, 2025 [1][2]. Group 1: Lawsuit Details - The lawsuit claims that Vestis provided misleading positive statements while concealing adverse facts about its business growth capabilities [2]. - Vestis announced disappointing financial results for Q2 2025, withdrawing its revenue guidance for the full fiscal year and providing lower-than-expected guidance for Q3 2025 [2]. - Following the announcement, Vestis' stock price plummeted from $8.71 per share on May 6, 2025, to $5.44 per share on May 7, 2025, marking a decline of approximately 37.54% in one day [2]. Group 2: Next Steps for Investors - Investors who suffered losses during the specified timeframe have until August 8, 2025, to request appointment as lead plaintiff in the lawsuit [3]. - Participation in the lawsuit does not require any out-of-pocket costs or fees for class members [3]. Group 3: Firm Background - Levi & Korsinsky has a strong track record in securities litigation, having secured hundreds of millions of dollars for shareholders over the past 20 years [4]. - The firm has been recognized as one of the top securities litigation firms in the United States for seven consecutive years [4].

Core Viewpoint - A class action lawsuit has been filed against Vestis Corporation for allegedly providing misleading statements about its business growth and performance during the class period from May 2, 2024, to May 6, 2025 [1][3]. Group 1: Lawsuit Details - The lawsuit is on behalf of all individuals and entities who purchased or acquired Vestis securities during the specified class period [1]. - Investors have until August 8, 2025, to apply to the Court to be appointed as lead plaintiff in the lawsuit [1]. Group 2: Allegations Against Vestis - The complaint alleges that Vestis made overwhelmingly positive statements while concealing material adverse facts about its business growth capabilities [3]. - Specifically, it is claimed that Vestis would be unable to execute planned strategic initiatives aimed at improving customer experience and driving new customer growth [3]. Group 3: Financial Performance - On May 7, 2025, Vestis announced disappointing financial results for Q2 of fiscal 2025, withdrawing its revenue and growth guidance for the full fiscal year [4]. - The company attributed its poor performance to "lost business in excess of new business" and "lower adds over stops," indicating a decline in volume changes with existing customers [4]. - Following this announcement, Vestis' stock price plummeted from $8.71 per share on May 6, 2025, to $5.44 per share on May 7, 2025, marking a decline of approximately 37.54% in one day [4].

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Vestis Corporation regarding a class action lawsuit due to allegations of misleading statements and failure to meet growth expectations [1][3]. Allegations and Financial Impact - The allegations state that Vestis Corporation provided overly positive statements while concealing material adverse facts about its business growth capabilities [3]. - On May 7, 2025, Vestis announced disappointing financial results for Q2 2025, withdrew its revenue guidance for the full fiscal year, and provided lower-than-expected guidance for Q3 2025, attributing the poor performance to "lost business in excess of new business" and "lower adds over stops" [3]. - Following the announcement, Vestis' stock price plummeted from $8.71 per share on May 6, 2025, to $5.44 per share on May 7, 2025, marking a decline of approximately 37.54% in one day [3]. Class Action Details - The class period for the lawsuit is defined as May 2, 2024, to May 6, 2025, and shareholders are encouraged to register for participation [3][4]. - The deadline for shareholders to seek lead plaintiff status is August 8, 2025, and there is no cost to participate in the case [4]. Firm's Commitment - The Gross Law Firm emphasizes its mission to protect investors' rights and ensure companies adhere to responsible business practices [5].

Group 1 - The Portnoy Law Firm is advising investors of Vestis Corporation regarding a class action lawsuit for those who purchased securities between May 2, 2024, and May 6, 2025 [1][2] - The lawsuit alleges that Vestis misled investors by presenting false information about its revenue forecasts and growth projections while downplaying risks related to seasonality and economic conditions [3] - On May 7, 2025, Vestis withdrew its full-year 2025 revenue and growth guidance, leading to a stock price drop of over 37% after the announcement of disappointing third-quarter forecasts [4] Group 2 - Vestis provides uniform rental services and workplace supplies across the United States and Canada [2] - The company claimed a return to positive growth in fiscal 2025, which was later deemed unfounded as it faced a substantial decline in revenue from existing customers [3] - The firm attributed its disappointing results to "lost business exceeding new business" and cited an "increasingly uncertain macro environment" as a reason for withdrawing its outlook [4]

Core Insights - The complaint alleges that Vestis and its executives violated federal securities laws by making materially false and misleading statements regarding the company's growth potential and strategic initiatives [2] - Vestis announced disappointing financial results for Q2 2025, withdrew its revenue guidance for the full fiscal year, and provided lower-than-expected guidance for Q3 2025, attributing these issues to lost business and a challenging macro environment [3] Financial Performance - On May 7, 2025, Vestis reported a significant decline in stock price, dropping from $8.71 per share on May 6 to $5.44 per share on May 7, representing a decrease of approximately 37.54% in one day [3] Legal Proceedings - The lead plaintiff in the class action lawsuit is the investor with the largest financial interest, who will oversee the litigation on behalf of the class [4] - The law firm Faruqi & Faruqi encourages individuals with information about Vestis' conduct to come forward, including whistleblowers and former employees [5]

Financial Data and Key Metrics Changes - Revenue for the quarter was $674 million, down $24 million or 3.5% year over year compared to 2024, primarily due to an $18 million decrease in rental revenue and $6 million lower direct sales [14][15] - Cost of services was $492 million, with a gross margin of 27%, down approximately 200 basis points year over year [16] - Adjusted EBITDA for the third quarter was $64 million, representing an adjusted margin of 90.5% [18] Business Line Data and Key Metrics Changes - Rental revenue saw a decline, with growth from new business contributing approximately $45 million or 6.7% year over year, while churn resulted in a revenue impact of approximately $60 million [14][15] - Direct sales revenue decreased by $6 million or 14% year over year, primarily due to the loss of a large national account in 2024 [16] Market Data and Key Metrics Changes - Business retention as measured in revenue dollars was 91.9% at the end of Q3, a slight decrease compared to the previous quarter [15] - The company observed an increase in sales from both field and national account sales organizations, which collectively installed 20% more recurring revenue year over year [14] Company Strategy and Development Direction - The company aims to focus on commercial processes, operational discipline, and a clear strategy to unlock operating leverage through value-based pricing, favorable product mix, and efficient cost of service [6][11] - There is a shift in sales approach to prioritize profitability over volume, with a focus on margin-accretive growth [8][9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing revenue pressure as churn outpaces conversion but expressed confidence that improvement initiatives will yield positive results [12][20] - The expectation for near-term performance is to remain similar to the last quarter, with a commitment to improving in 2026 [13][20] Other Important Information - The company generated $23 million of operating cash flow and $8 million of free cash flow during the quarter, reflecting positive improvement [18] - As of the end of the third quarter, debt was $1.32 billion, with a strong liquidity position and no debt maturities until 2027 [19] Q&A Session Summary Question: Initial assessment of strengths and weaknesses - Management highlighted the importance of creating operating leverage and emphasized the need for reliable plants and strong service to customers [26][28] Question: Shift from volume growth to profitability - Management confirmed a focus on creating value for customers to drive penetration growth and improve churn [31][32] Question: Hiring behavior among customer base - Management characterized the hiring behavior as neutral, indicating a focus on managing headwinds and tailwinds effectively [36] Question: Sales environment in end markets - Management noted that the sales environment remains stable across key sectors such as hospitality, healthcare, and retail, with a positive outlook on non-programmer growth [44][46] Question: Updates on strategic advisors and potential transactions - Management clarified that the focus is on optimizing the core business rather than pursuing transactions at this stage [48][49]

Financial Performance - Revenue for Fiscal Q3 2025 was $673.8 million, a decrease of 3.5% compared to $698.2 million in Fiscal Q3 2024[15] - Gross profit decreased by 10.1% year-over-year, from $202.5 million in Fiscal Q3 2024 to $182.1 million in Fiscal Q3 2025[15] - Gross margin decreased by 197 basis points year-over-year, from 29.0% in Fiscal Q3 2024 to 27.0% in Fiscal Q3 2025[15] - Adjusted EBITDA decreased by 26.3% year-over-year, from $86.9 million in Fiscal Q3 2024 to $64.0 million in Fiscal Q3 2025[15] - Adjusted EBITDA margin decreased by 295 basis points year-over-year, from 12.4% in Fiscal Q3 2024 to 9.5% in Fiscal Q3 2025[15] - Free cash flow decreased by 71.1% year-over-year, from $27.7 million in Fiscal Q3 2024 to $8.0 million in Fiscal Q3 2025[15] Revenue Disaggregation - Consolidated uniforms revenue decreased by 6.7%, from $279.004 million in Fiscal Q3 2024 to $260.427 million in Fiscal Q3 2025[48] - Consolidated workplace supplies revenue decreased by 1.4%, from $419.244 million in Fiscal Q3 2024 to $413.372 million in Fiscal Q3 2025[48] - Rental revenue decreased by 2.7%, and direct sales revenue decreased by 14.2%[13] Liquidity and Debt - Total available liquidity was $290 million, including $24 million cash on hand[14] - Net debt was $1.3 billion[38] - Net leverage ratio was 4.50x[14, 38]

Core Viewpoint - A class action lawsuit has been filed against Vestis Corporation for allegedly providing misleading information to investors regarding its business growth and strategic initiatives [1][3]. Group 1: Lawsuit Details - The lawsuit is on behalf of all individuals and entities that purchased Vestis securities between May 2, 2024, and May 6, 2025, with a deadline of August 8, 2025, to apply as lead plaintiff [1]. - The complaint alleges that Vestis made overwhelmingly positive statements while concealing material adverse facts about its business growth capabilities [3]. Group 2: Financial Performance - On May 7, 2025, Vestis announced disappointing financial results for Q2 2025, withdrawing its revenue and growth guidance for the full fiscal year [4]. - The company attributed its poor performance to "lost business in excess of new business" and "lower adds over stops," indicating a decline in customer volume [4]. - Following the announcement, Vestis' stock price plummeted from $8.71 per share on May 6, 2025, to $5.44 per share on May 7, 2025, marking a decline of approximately 37.54% in one day [4].

分组1 - Vestis reported quarterly earnings of $0.05 per share, matching the Zacks Consensus Estimate, but down from $0.16 per share a year ago [1] - The company posted revenues of $673.8 million for the quarter ended June 2025, slightly exceeding the Zacks Consensus Estimate by 0.04%, but down from $698.25 million year-over-year [2] - Vestis has only surpassed consensus EPS estimates once in the last four quarters and has underperformed the market, losing about 60.9% since the beginning of the year [3][4] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.09 on revenues of $698.48 million, and for the current fiscal year, it is $0.23 on revenues of $2.71 billion [7] - The Zacks Industry Rank for Uniform and Related is in the top 41% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Core Viewpoint - The Portnoy Law Firm is representing investors in a class action lawsuit against Vestis Corporation, alleging misleading information regarding revenue forecasts and growth projections during the specified class period [1][3]. Group 1: Class Action Details - The class action represents investors who purchased securities between May 2, 2024, and May 6, 2025, with a deadline of August 8, 2025, to file a lead plaintiff motion [1]. - The lawsuit claims that Vestis misled investors by presenting an overly optimistic outlook while downplaying risks associated with seasonality and economic conditions [3]. Group 2: Allegations and Company Performance - Vestis is accused of creating a false impression of reliable revenue forecasts, which ultimately led to a significant decline in revenue from existing customers [3]. - On May 7, 2025, Vestis withdrew its full-year 2025 revenue guidance and issued third-quarter forecasts that missed market expectations, attributing the disappointing results to "lost business exceeding new business" and an "increasingly uncertain macro environment" [4]. - Following the announcement of these results, Vestis' stock price fell by more than 37% [4].