US uniform rental company Unifirst Corp's Q2 FY21 sales dip to $450 mn

20 Apr '21

2 min read

Pic: Unifirst Corporation

UniFirst Corp, a North American leader in the supply and servicing of uniform and workwear programmes, reported 3.2 per cent sales decline to $449.8 million in second quarter (Q2) FY21 ended on February 27, 2021, compared to $464.6 million in the same period previous fiscal. The company’s net income for the quarter was $32.6 million (Q2 FY20: $34.7 million).

“During the quarter, our business and the economy continued to be impacted by the Covid-19 pandemic. In addition, our results were affected by the severe winter storms in Texas and the surrounding states during February,” Steven Sintros, UniFirst president and chief executive officer, said in a press release.

The company’s total operating expenses were $409.0 million ($420.5 million). Operating income for Q1 FY21 was $40.7 million ($44.1 million).

During the reported period, revenues for core laundry operations segment decreased 3.4 per cent to $398.2 million ($412.2 million) due to the continued impact of the Covid-19 pandemic on company’s customers’ operations and wearer levels. Whereas specialty garments sales fell 2.1 per cent to $35.2 million ($35.9 million) due to decreased revenues from US and Canadian nuclear operations which were partially offset by higher direct sales in the company’s cleanroom operations.

“During the latter part of our second quarter, positive Covid-19 cases in the markets we serve declined sharply from the surge experienced over the holidays. This decline has created more stability in our operating environment even though economic activity continues to be at reduced levels including in the energy dependent markets that we service,” Sintros said.

Fibre2Fashion News Desk (JL)

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