Vestis Corporation (VSTS)

Vestis Corp.'s stock price has experienced significant volatility over the past six months. The stock declined over 35% after its Q2 2024 earnings report due to disappointing results and a revised fiscal year 2024 outlook. The stock price fell by 37% in a single day in July 2025 after the company admitted to revenue declines and operational failures, leading to class-action lawsuits. Vestis withdrew its revenue and growth guidance for fiscal year 2025, citing lost business and lower adds with existing customers. The stock reached an all-time high of $22.37 on February 2, 2024, and an all-time low of $3.98 on September 10, 2025. There was a temporary 17% increase in stock price in early 2025 due to market speculation, followed by further declines.

Demand for Vestis Corp.'s uniform rental and workplace supply products and services can be subject to seasonality. The uniform rental market, particularly in the hospitality sector, experiences significant seasonal fluctuations, with demand potentially declining during off-peak travel seasons. Healthcare demand can also follow cyclical patterns, such as increased requests for scrubs and isolation gowns during flu seasons or public health emergencies. Businesses in general face seasonal demand variations driven by factors like holidays, weather changes, consumer trends, and economic cycles, which can impact the need for workplace supplies.

Vestis Corp. provides uniform rentals and workplace supplies, including shirts, pants, outerwear, gowns, scrubs, high-visibility garments, particulate-free garments, flame-resistant garments, shoes, and accessories. The company also offers workplace essentials like managed restroom supply services, first-aid supplies and safety products, floor mats, towels, and linens, serving diverse industries such as manufacturing, hospitality, retail, food processing, food service, pharmaceuticals, healthcare, automotive, and cleanroom environments. Vestis manages the entire uniform lifecycle, from design and manufacturing to customization, delivery, laundering, sanitization, repair, and replacement.

Vestis Corp. operates primarily in the United States and Canada, with most revenue from U.S. operations. The company serves over 300,000 business locations across North America through a network of more than 350 facilities and 3,300 weekly delivery routes.

Vestis Corp.'s brand reputation has faced challenges over the past year. The company experienced a loss of credibility following its Q2 2024 financial report, which revealed poor service, specifically tardy and short deliveries. Misleading growth projections and outdated infrastructure also contributed to a negative perception. The company's financial underperformance, including declining earnings estimates and market valuation, has further eroded investor confidence. Class-action lawsuits initiated against Vestis Corporation due to alleged mismanagement and operational failures have also negatively impacted its reputation.

Vestis Corp. has significant institutional ownership, with 106.69% held by institutional shareholders, including Corvex Management LP, BlackRock, Inc., Vanguard Group Inc, Fmr Llc, Alberta Investment Investment Management Corp, Aqr Capital Management Llc, Dimensional Fund Advisors Lp, and State Street Corp. Individual insiders own 29.00% of the company, with Keith A. Meister being the largest individual shareholder, holding 18.82 million shares, representing 14.27% of the company.