Latest news with #VSTS
Business Wire
6 days ago
- Business
- Business Wire
Law Offices of Frank R. Cruz Encourages Vestis Corporation (VSTS) Investors To Inquire About Securities Fraud Class Action
LOS ANGELES--(BUSINESS WIRE)-- The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of investors who purchased Vestis Corporation ('Vestis' or the 'Company') (NYSE: VSTS) securities between , inclusive (the 'Class Period'). Vestis investors have until August 8, 2025 to file a lead plaintiff motion. Law Offices of Frank R. Cruz Encourages Vestis Corporation (VSTS) Investors To Inquire About Securities Fraud Class Action Share IF YOU SUFFERED A LOSS ON YOUR VESTIS CORPORATION (VSTS), INVESTMENTS, CLICK HERE TO SUBMIT A CLAIM TO POTENTIALLY RECOVER YOUR LOSSES IN THE ONGOING SECURITIES FRAUD LAWSUIT. You can also contact the Law Offices of Frank R. Cruz to discuss your legal rights by email at info@ by telephone at (310) 914-5007, or visit our website at What Happened? On May 7, 2025, Vestis released its second quarter fiscal 2025 financial results and revised its prior growth and revenue guidance for 2025, providing guidance for the third quarter, falling significantly below market expectations. The Company explained that the poor results were partially due to 'lost business in excess of new business' but primarily on 'lower adds over stops, which is how [it] describe[s] volumes changes with [its] existing customers.' On this news, Vestis's stock price fell $3.27, or 37.5%, to close at $5.44 per share on May 7, 2025, thereby injuring investors. What Is The Lawsuit About? The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company was not equipped to achieve its growth guidance as the realization of these efforts instead resulted in a significant decline of revenue from existing customers; and (2) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times. Contact Us To Participate or Learn More: If you purchased Vestis securities, wish to learn more about this action, or have any questions concerning this announcement or your rights or interests with respect to these matters, please click HERE or contact us at: Law Offices of Frank R. Cruz 2121 Avenue of the Stars, Suite 800 Telephone: 310-914-5007 Email: info@ Visit our website at: This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Associated Press
14-06-2025
- Business
- Associated Press
VSTS Investor Notice: Robbins LLP Reminds Investors of the Class Action Lawsuit Against Vestis Corporation
SAN DIEGO, June 13, 2025 (GLOBE NEWSWIRE) -- Robbins LLP reminds stockholders that a class action was filed on behalf of investors who purchased or otherwise acquired Vestis Corporation (NYSE:VSTS) securities between May 2, 2024 and May 6, 2025. Vestis is a North American company that provides uniform rentals and workplace supplies across the U.S. and Canada. For more information, submit a form , email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003. The Allegations: Robbins LLP is Investigating Allegations that Vestis Corporation (VSTS) Misled Investors regarding Customer Growth According to the complaint, defendants failed to disclose to investors that Vestis would be unable to execute on planned strategic initiatives to drive purported improvements to the customer experience and its onboarding efforts in order to drive new customer growth, increased customer retention, and increased revenue from existing customers. The complaint alleges that these statements caused stockholders to purchase Vestis' securities at artificially inflated prices. According to the complaint, on May 7, 2025, Vestis announced its financial results for the second quarter of fiscal 2025, withdrew its revenue and growth guidance for the full fiscal year 2025, and provided guidance for the third quarter of fiscal 2025 that fell significantly below market expectations. The Company attributed its poor results partially to 'lost business in excess of new business,' but primarily on 'lower adds over stops, which is how we describe volume changes with our existing customers.' The Company attributed its decision to pull full-year guidance and provide disappointing third quarter targets to the 'increasingly uncertain macro environment.' On this news, the price of Vestis' common stock fell from a closing market price of $8.71 per share on May 6, 2025, to $5.44 per share on May 7, 2025, a decline of about 37.54% in the span of just a single day. What Now: You may be eligible to participate in the class action against Vestis Corporation. Shareholders who want to serve as lead plaintiff for the class must file a motion for lead plaintiff by August 8, 2025. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here . All representation is on a contingency fee basis. Shareholders pay no fees or expenses. About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Vestis Corporation settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today. Attorney Advertising. Past results do not guarantee a similar outcome.
Associated Press
13-06-2025
- Business
- Associated Press
Law Offices of Howard G. Smith Encourages Vestis Corporation (VSTS) Investors to Inquire About Securities Fraud Class Action
BENSALEM, Pa.--(BUSINESS WIRE)--Jun 13, 2025-- Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Vestis Corporation ('Vestis' or the 'Company') (NYSE: VSTS ) securities between May 2, 2024, to May 6, 2025, inclusive (the 'Class Period'). Vestis investors have until August 8, 2025 to file a lead plaintiff motion. IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN VESTIS CORPORATION (VSTS), CONTACT THE LAW OFFICES OF HOWARD G. SMITH TO PARTICIPATE IN THE ONGOING SECURITIES FRAUD LAWSUIT. Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at [email protected], by telephone at (215) 638-4847 or visit our website at What Happened? On May 7, 2025, Vestis released its second quarter fiscal 2025 financial results and revised its prior growth and revenue guidance for 2025, providing guidance for the third quarter, falling significantly below market expectations. The Company explained that the poor results were partially due to 'lost business in excess of new business' but primarily on 'lower adds over stops, which is how [it] describe[s] volumes changes with [its] existing customers.' On this news, Vestis's stock price fell $3.27, or 37.5%, to close at $5.44 per share on May 7, 2025, thereby injuring investors. What Is the Lawsuit About? The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company was not equipped to achieve its growth guidance as the realization of these efforts instead resulted in a significant decline of revenue from existing customers; and (2) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times. Contact Us to Participate or Learn More: If you purchased Vestis securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us: Law Offices of Howard G. Smith 3070 Bristol Pike, Suite 112 Bensalem, Pennsylvania 19020 Telephone: (215) 638-4847 Email: [email protected] Visit our website at: This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules. View source version on CONTACT: Law Offices of Howard G. Smith Howard G. Smith, Esquire 215-638-4847 [email protected] KEYWORD: UNITED STATES NORTH AMERICA PENNSYLVANIA INDUSTRY KEYWORD: CLASS ACTION LAWSUIT PROFESSIONAL SERVICES LEGAL SOURCE: Law Offices of Howard G. Smith Copyright Business Wire 2025. PUB: 06/13/2025 02:56 PM/DISC: 06/13/2025 02:55 PM
Business Wire
13-06-2025
- Business
- Business Wire
Law Offices of Howard G. Smith Encourages Vestis Corporation (VSTS) Investors to Inquire About Securities Fraud Class Action
BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Vestis Corporation ('Vestis' or the 'Company') (NYSE: VSTS) securities between , inclusive (the 'Class Period'). Vestis investors have until August 8, 2025 to file a lead plaintiff motion. IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN VESTIS CORPORATION (VSTS), CONTACT THE LAW OFFICES OF HOWARD G. SMITH TO PARTICIPATE IN THE ONGOING SECURITIES FRAUD LAWSUIT. Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at howardsmith@ by telephone at (215) 638-4847 or visit our website at What Happened? On May 7, 2025, Vestis released its second quarter fiscal 2025 financial results and revised its prior growth and revenue guidance for 2025, providing guidance for the third quarter, falling significantly below market expectations. The Company explained that the poor results were partially due to 'lost business in excess of new business' but primarily on 'lower adds over stops, which is how [it] describe[s] volumes changes with [its] existing customers.' On this news, Vestis's stock price fell $3.27, or 37.5%, to close at $5.44 per share on May 7, 2025, thereby injuring investors. What Is the Lawsuit About? The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) the Company was not equipped to achieve its growth guidance as the realization of these efforts instead resulted in a significant decline of revenue from existing customers; and (2) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times. Contact Us to Participate or Learn More: If you purchased Vestis securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us: Law Offices of Howard G. Smith 3070 Bristol Pike, Suite 112 Bensalem, Pennsylvania 19020 Telephone: (215) 638-4847 Email: howardsmith@ Visit our website at: This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Yahoo
20-05-2025
- Business
- Yahoo
VSTS Q1 Earnings Call: Revenue Miss, Service Challenges, and Leadership Transition Shape Outlook
Uniform rental provider Vestis Corporation (NYSE:VSTS) fell short of the market's revenue expectations in Q1 CY2025, with sales falling 5.7% year on year to $665.2 million. On the other hand, the company expects next quarter's revenue to be around $678 million, close to analysts' estimates. Its non-GAAP loss of $0.05 per share was significantly below analysts' consensus estimates. Is now the time to buy VSTS? Find out in our full research report (it's free). Revenue: $665.2 million vs analyst estimates of $693 million (5.7% year-on-year decline, 4% miss) Adjusted EPS: -$0.05 vs analyst estimates of $0.15 (significant miss) Adjusted EBITDA: $47.62 million vs analyst estimates of $83.07 million (7.2% margin, 42.7% miss) Revenue Guidance for Q2 CY2025 is $678 million at the midpoint, roughly in line with what analysts were expecting EBITDA guidance for Q2 CY2025 is $63 million at the midpoint, below analyst estimates of $89.75 million Operating Margin: -1.3%, down from 6.1% in the same quarter last year Free Cash Flow was -$6.85 million, down from $63.16 million in the same quarter last year Market Capitalization: $814.4 million Vestis Corporation's first quarter results reflected operational challenges stemming from volume declines and ongoing customer service issues, as discussed by interim CEO Phillip Holloman. The company faced revenue headwinds as rental sales fell short of expectations, primarily due to lower demand from hospitality customers post-holiday and a drop in billings for lost or ruined inventory. Management also cited seasonal factors and continuing service-related credits as key contributors to underperformance. Looking ahead, Vestis leadership shifted to providing only quarterly guidance, citing both the need to realign internal forecasting and external macroeconomic uncertainty. The company expects slight sequential revenue improvement, but margins are projected to remain pressured. Holloman emphasized ongoing investments in customer service and operational efficiency, while incoming CEO Jim Barber's leadership transition is expected to influence future strategy and execution. CFO Kelly Janzen noted, 'We are encouraged by recent trends,' but acknowledged the need for continued improvements in retention and service delivery. Vestis management attributed the latest quarter's shortfall to internal operational issues and seasonal demand factors, while highlighting steps underway to stabilize performance and support future growth. Leadership transition announced: Former UPS COO Jim Barber was appointed as the incoming CEO, effective June 2025, signaling a shift in leadership focus. Customer service focus: Management acknowledged that service deficiencies, such as product shortages and cleaning quality, drove increased credits issued to customers, adversely affecting revenue. Sales team ramp-up: The frontline sales organization is now fully staffed, with productivity per sales representative rising 10% over the quarter, supporting improved new business wins. Lost versus new business: Although lost business still exceeded new wins, the gap narrowed by about 10% quarter-over-quarter, and new customer installations rose 35% year-over-year. Operational changes and cost control: The company continued plant consolidations and asset utilization initiatives, while emphasizing the need to balance cost reductions with investments to retain customers and enhance service. Management's outlook for the next quarter is shaped by ongoing investments in service and sales capacity, tempered by the need to address persistent cost pressures and internal execution risks. Customer retention improvements: The company is prioritizing service enhancements and operational reliability to reduce customer churn, which management believes is essential for stabilizing revenue. Margin recovery efforts: Efforts to improve gross margin include stricter control over service credits, optimization of facility operations, and reduced discretionary spending. CEO transition impact: The incoming CEO is expected to evaluate further strategic and operational changes, potentially increasing investment to drive a turnaround in customer service and sales effectiveness. Andy Wittmann (Baird): Asked about management's confidence that this quarter marks the bottom and whether operational service issues are being resolved. Management cited improving monthly revenue trends but acknowledged the need for sustained progress. Shlomo Rosenbaum (Stifel): Inquired about the duration and required investment of the cultural transformation to address recurring service issues. Leadership described a renewed focus on accountability and customer-centric operations, but emphasized it will take time. Luke McFadden (William Blair): Sought clarity on when new business is expected to exceed lost business. The company expressed optimism, citing increased sales team productivity but did not provide a specific timeline. Ronan Kennedy (Barclays): Asked whether revenue declines and suspended guidance were due to internal factors or broader market trends. Management confirmed most issues were internal, especially related to customer retention and service. Stephanie Moore (Jefferies): Requested details on how Vestis differentiates itself to win new customers given recent service challenges. Management highlighted that 56% of new wins came from competitors and pointed to new service tools and processes. In the upcoming quarters, the StockStory team will monitor (1) whether service initiatives succeed in reducing customer churn and credits, (2) the impact of the CEO transition on operational strategy and execution, and (3) the ability of the fully staffed sales team to convert increased pipeline activity into sustained revenue growth. Improvements in free cash flow and margin stabilization will also be key areas of focus. Vestis currently trades at a forward P/E ratio of 7.8×. 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