Vestis Corporation (NYSE:VSTS) Q4 2023 Earnings Call Transcript

So that we can not only retain them, but we can cross-sell the base. We are analyzing recent costs when we’re losing customers in that segment in the small to medium enterprise segment. We typically get that data through our inbound call center, and we’re able to tie recent coach to that. I would say trends in the SME space about 1/4 of those inbound calls when we’re losing customers on the SME side of the business are tied to business closures or they’re tied to business sales. So I find that to be an interesting trend that we’re observing and continuing to monitor as we’re seeing transition taking place with SME businesses. But some of that is related to selling the business, not closing the business. And so we’re able to rent those customers and retain them, but it’s an interesting trend that we’re keeping an eye on.

Otherwise, I would say the trend is great that SME customers are very open to outsourcing additional workplace supplies. And so we are seeing a tremendous response as we’re out cross-selling the existing customer base, we are seeing a tremendous response for outsourcing related to these workplace supplies and services that we’re very actively focused on. So there’s a real willingness to give that up and allow others to do that so that our customers can take care of their core business and focus on what matters most to them.

Operator: This concludes the Q&A portion of today’s call. I would now like to turn the floor over to Kim Scott, President and CEO, for closing remarks.

Kim Scott: So thank you for joining our call today and for your interest in Vestis. We are really pleased with our FY ’23 performance and the great progress that we are making against our strategic plan. And so the opportunities for us are tremendous as we move forward and our future remains bright. So thank you for joining us today.

Operator: Thank you. This concludes today’s Vestis Corporation fiscal fourth quarter and full year 2023 earnings conference call. Please disconnect your lines at this time, and have a wonderful day.