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Unifirst 1Q revenue jumps as specialty garment segment sees 20% increase

Revenue from its specialty garments segment, which includes its nuclear decontamination and cleanroom operations, jumped 21.2% to $34.4 million
Unifirst logo on a building
Unifirst manufactures workwear, uniforms and protective clothing as well as safety products

Unifirst Corp (NASDAQ:UNF), a producer of workwear, saw a boost in revenue in its fiscal first-quarter results, despite facing higher merchandise costs.

The work-wear clothing company reported earnings of $1.99 per share compared with $1.67 in the previous first quarter.

READ: Park Electrochemical beats Wall Street's fiscal 3Q estimates, thanks to strength of aerospace business

Adjusted earnings were $1.88, falling short of Wall Street expectations of $1.92 per share.

Shares of the Massachusetts-based company dipped about 2.9% to $140.80 in Thursday morning trading.

Quarterly revenue totaled $438.6 million, a 5% increase compared with $415.8 million a year ago.

"As anticipated, our overall margin in the quarter was challenged primarily by the impact of higher payroll costs partially driven by the low unemployment environment, as well as higher merchandise and related costs,” said CEO Steven Sintros in the company’s press release.

The company manufactures workwear, uniforms and protective clothing for nuclear industries as well as safety products like floorcare and first aid items.

Its core laundry segment revenue increased 4.5% to $390.5 million while revenue from its specialty garments segment, which includes its nuclear decontamination and cleanroom operations, increased 21.2% to $34.4 million.

For the year ahead, the company expects full-year earnings in the range of $6.65 to $6.90 per share with revenue in the range of $1.77 billion to $1.79 billion.

Its board has approved a share buyback program to repurchase up to $100 million of its outstanding shares of common stock.

 

Contact Lenore Fedow at [email protected]

Follow her on Twitter@LenoreMariee

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