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Vestis Corp
NYSE:VSTS

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Vestis Corp
NYSE:VSTS
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Price: 7 USD 8.86%
Market Cap: 923.1m USD

Vestis Corp
Investor Relations

Vestis Corp. emerges as a formidable presence in the outdoor and active lifestyle market, positioning itself as a dynamic player through its strategic acquisitions and brand management. The company orchestrates a diverse portfolio of popular apparel and gear brands, capitalizing on the robust consumer demand for outdoor and sporting goods. Vestis Corp.'s model thrives on identifying and harnessing the potential of niche brands, scaling them by leveraging a symphony of operational efficiencies and broadening their market reach. These brands, known for their strong consumer loyalty and specialized product lines, are strategically nurtured under Vestis's umbrella, allowing each to benefit from the group's overarching resources and industry insights.

At the heart of Vestis Corp.'s revenue engine lies its multi-channel distribution strategy. By seamlessly integrating wholesale, direct-to-consumer, and e-commerce platforms, the company not only enhances its market penetration but also ensures consistent engagement with its target audience. This approach mitigates risk by diversifying income streams while simultaneously nurturing brand recognition and customer loyalty. Furthermore, through data-driven marketing strategies and adaptive supply chain management, Vestis Corp. ensures its brands maintain relevance and responsiveness to ever-changing consumer trends. The result is a robust financial structure that propels the company's growth and cements its standing as a leader in the active lifestyle sector.

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Last Earnings Call
Fiscal Period
Q4 2025
Call Date
Dec 2, 2025
AI Summary
Q4 2025

Revenue Decline: Normalized Q4 2025 revenue was $660 million, down 3.5% year-over-year due to lower rental and direct sales, as well as some customer churn.

Margin Pressure: Gross margin fell to 25.1%, down 366 basis points versus last year, mainly due to lower revenue and higher plant costs.

Transformation Plan: Vestis launched a multiyear business transformation focusing on commercial and operational excellence, targeting $75 million in cost savings by end of 2026.

2026 Guidance: Management expects 2026 revenue to be flat to down 2% and adjusted EBITDA between $285 million and $315 million, with $50–60 million in free cash flow.

Cost Actions: Targeted workforce reductions and network optimization are underway to improve efficiency and restore operating leverage.

Pricing & Product Mix: New pricing tools and a shift back to higher-margin uniform business are key priorities after prior over-emphasis on low-margin products.

Profitability Improvement: Q4 2025 is seen as the low point, with steady, measurable progress anticipated through 2026.

Key Financials
Revenue
$712 million (reported), $660 million (normalized)
Gross Margin
25.1%
Adjusted EBITDA
$65 million (Q4 normalized), $68 million (Q4 reported before environmental reserve)
Adjusted EBITDA Margin
9.1% (reported Q4), 9.8% (normalized Q4)
Free Cash Flow
$16 million (Q4)
Operating Cash Flow
$31 million (Q4)
Net Debt
$1.34 billion
Business Retention Rate
91.8% (rolling 12 months, Q4)
Effective Tax Rate
9.2% (2025)
Capital Expenditures
$15 million (Q4)
Available Liquidity
$298 million
Other Earnings Calls

Management

Ms. Kimberly T. Scott
President, CEO & Director
No Bio Available
Mr. Ricky T. Dillon
Executive VP & CFO
No Bio Available
Mr. Grant Shih
Executive VP & CTO
No Bio Available
Mr. Timothy R. Donovan
Executive VP, Chief Legal Officer & General Counsel
No Bio Available
Ms. Angela Kervin
Executive VP & Chief Human Resources Officer
No Bio Available
Mr. William J. Seward
Executive VP & Chief Operating Officer
No Bio Available
Mr. Peter Rego
Senior Vice President of Sales
No Bio Available

Contacts

Address
GEORGIA
Roswell
500 Colonial Center Parkway, Suite 140
Contacts
+14702263655