Vestis Corporation (VSTS)
Gross profit margin
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 230,080 | 855,071 | 777,329 | 690,942 | 748,011 |
| Revenue | US$ in thousands | 2,800,900 | 2,825,290 | 2,687,000 | 2,456,580 | 2,562,000 |
| Gross profit margin | 8.21% | 30.26% | 28.93% | 28.13% | 29.20% |
September 30, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $230,080K ÷ $2,800,900K
= 8.21%
The gross profit margin of Vestis Corporation has experienced a significant decline over the past few years. In the most recent fiscal year ending Sep 30, 2024, the gross profit margin dropped to 8.21%, marking a substantial decrease from 30.26% in the prior year. This downward trend is evident compared to 2022, when the gross profit margin was 28.93%, and in 2021 and 2020, when it was 28.13% and 29.20%, respectively.
Such a drastic decrease in the gross profit margin may indicate challenges in managing production costs or pricing strategies, impacting the company's profitability. It is essential for Vestis Corporation to closely examine the factors contributing to this decline and take appropriate measures to improve efficiency and cost control in order to enhance profitability in the future.
Peer comparison
Sep 30, 2024