What Happened?

Shares of uniform rental provider Vestis Corporation (NYSE: VSTS) fell 37.5% in the afternoon session after the company reported disappointing first-quarter 2025 results, which missed across the board and included guidance that fell well short of expectations. The big hit came from lost deals and weaker sales to current clients, along with the loss of a big national account. Revenue dropped 6%, and even after removing a one-time charge, profit still fell from last year. The company gave a weak outlook for next quarter and pulled its full-year forecast, pointing to shaky demand. There were no redeeming qualities here.

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What The Market Is Telling Us

Vestis’s shares are quite volatile and have had 16 moves greater than 5% over the last year. But moves this big are rare even for Vestis and indicate this news significantly impacted the market’s perception of the business.

Vestis is down 65.1% since the beginning of the year, and at $5.34 per share, it is trading 67.9% below its 52-week high of $16.62 from December 2024. Investors who bought $1,000 worth of Vestis’s shares at the IPO in September 2023 would now be looking at an investment worth $277.31.

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