Cintas stock sinks due to drop in uniform direct sales

Cintas truck — Smith Collection / Gado / Getty Images

The Key Takeaways

Cintas’ shares fell Thursday after the uniforms provider reported a drop in sales and issued a warning about price.
Second-quarter revenue and profit topped analysts' estimates.
Cintas shares have fallen to the lowest levels since August.

Cintas’ (CTAS) stock fell by nearly 10% Thursday intraday after the uniforms provider reported a drop in sales and raised concerns about its pricing.

Todd Schneider (CEO), AlphaSense Chief Executive, noted in the transcript provided by AlphaSense that uniform direct selling is a key component of the business. “strategic business for us that sells into Fortune 1000-type customers, airlines, hotels, casinos, those types. So that business can be quite lumpy.”

Schneider also said that raising prices has been more challenging, and with inflation coming down "it's very reasonable to think that price increases will come down as well."

Cintas Q2 Revenue, EPS Topped Estimates

Cintas’s strong performance was offset by the comments. The company announced fiscal 2025 second quarter earnings per share of $1.09 – exceeding Visible Alpha’s consensus. Its revenue increased by 7.8% to $2.56billion, meeting expectations.

Cintas has also increased its outlook for EPS to $4.28-$4.34 per share, from $4.17-4.25. It expects to generate revenue of between $10.255bn and $10.320bn, compared with the prior outlook that was $10.220bn to $10.320bn.

Cintas’ shares dropped 9.4% to $185.28 – their lowest since August.

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