What Happened?
Shares of uniform rental provider Vestis Corporation (NYSE: VSTS) fell 11.4% in the afternoon session after the company announced that its Chief Financial Officer, Kelly Janzen, would depart at the end of 2025.
The provider of uniforms and workplace supplies appointed Adam K. Bowen as Interim CFO. While the company stated Janzen's departure was not due to any disagreement over operations or policies, the news came as Vestis faced other financial challenges. The company had recently reported fourth-quarter earnings that fell significantly short of expectations. Vestis did reaffirm its full-year 2026 financial guidance, anticipating revenue to be flat to down 2% from the previous year. However, the leadership uncertainty appeared to weigh on investor sentiment.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Vestis? Access our full analysis report here.
What Is The Market Telling Us
Vestis’s shares are extremely volatile and have had 33 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.
The previous big move we wrote about was 14 days ago when the stock dropped 17.2% on the news that the company reported mixed results for its third quarter of 2025, with a significant miss on earnings per share.
While revenue of $712 million grew 4.1% year-over-year and surpassed Wall Street's estimates, profitability metrics disappointed investors. Vestis posted a GAAP loss of $0.10 per share, missing the consensus estimate for a loss of $0.02.
Furthermore, the company's adjusted EBITDA, operating margin, and free cash flow margin all declined compared to the same quarter last year. The weaker-than-expected profitability overshadowed the top-line beat, raising concerns about the company's cost structure and sparking a significant sell-off.
Vestis is down 55.7% since the beginning of the year, and at $6.78 per share, it is trading 58.8% below its 52-week high of $16.45 from January 2025. Investors who bought $1,000 worth of Vestis’s shares at the IPO in September 2023 would now be looking at an investment worth $352.05.
While Wall Street chases Nvidia at all-time highs, an under-the-radar semiconductor supplier is dominating a critical AI component these giants can’t build without. Click here to access our full research report.
