ARMK - Vestis Q1 Results: Uniform And Workplace Player Faces Growing Concerns
2024-05-03 14:58:11 ET
Summary
- Vestis Corporation, the uniform and workplace business spun off from Aramark, is facing pressure on its 2024 results and has seen a significant sell-off in shares.
- The company's sales have been lagging, and this applies more so to its margins, while its leverage ratio is a concern, leading to doubts about the attractiveness of the business.
- Following the recent profit warnings, shares have sold off aggressively, so I am not yet willing to go bottom fishing.
In November, I believed that while Vestis Corporation ( VSTS ) posted a positive earnings report after its spin-off, that not all separation questions (in the form of pro forma earnings implications) were answered....
Vestis Q1 Results: Uniform And Workplace Player Faces Growing Concerns