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Segment Reporting
 6 Months Ended
Feb. 28, 2026
Segment Reporting [Abstract]  
Segment Reporting

13. Segment Reporting

Operating segments are identified as components of an enterprise for which separate discrete financial information is available for evaluation by the chief operating decision-maker, or decision-making group, in making decisions on how to allocate resources and assess performance.

Prior to May 31, 2025, the Company organized its business into six operating segments: U.S. Rental and Cleaning, Canadian Rental and Cleaning, Manufacturing (“MFG”), Specialty Garments Rental and Cleaning (“Specialty Garments”), First Aid and Corporate. The U.S. Rental and Cleaning and Canadian Rental and Cleaning operating segments were previously combined to form the U.S. and Canadian Rental and Cleaning reporting segment, and as a result, the Company had five reporting segments. The Company previously referred to its U.S. and Canadian Rental and Cleaning, MFG, and Corporate segments combined as its “Core Laundry Operations.”

Beginning with the fourth quarter of 2025, the Company reorganized its business into three reportable operating segments:

Uniform & Facility Service Solutions: This reporting segment consolidates the former U.S. and Canadian Rental and Cleaning, MFG and Corporate segments and includes our cleanroom solutions, which was previously part of the Specialty Garments reporting segment. The Uniform & Facility Service Solutions reporting segment designs, manufactures, purchases, rents, cleans, delivers and sells, uniforms and protective clothing and non-garment items in the U.S. and Canada. The segment, through our cleanroom solutions, also purchases, rents, cleans, delivers and sells specialty garments and non-garment items primarily for cleanroom applications and provides cleanroom cleaning at limited customer locations. Additionally, Uniform & Facility Service Solutions consists of our distribution center, sales and marketing, information systems, engineering, materials management, manufacturing planning, finance, budgeting, human resources, other general and administrative costs and interest expense.

First Aid & Safety Solutions: We renamed our First Aid reporting segment as the First Aid & Safety Solutions reporting segment to better reflect the scope of services and products offered. The First Aid & Safety Solutions reporting segment sells first aid cabinet services, non-prescription medicines and safety supplies, and provides certain safety training.

Other: This reporting segment currently consists of our nuclear business, which was previously part of the Specialty Garments reporting segment with our cleanroom business. The segment purchases, rents, cleans, delivers and sells, specialty garments and non-garment items primarily for nuclear applications.

The Company’s chief operating decision maker (the “CODM”) is the Chief Executive Officer. The modifications to the Company’s reporting segments reflect how the CODM assesses performance and allocates resources. The CODM uses segment revenues and segment U.S. GAAP operating income to assess performance and allocate resources. The CODM uses this information, which includes a comparison of segment results to historical periods and budget, to guide decisions on how to allocate resources, to evaluate operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital.

The Company has recast prior certain period segment results to conform with the current presentation. For this recast, refer to the Company’s Form 8-K filed on October 17, 2025. Asset information is not utilized by the CODM for purposes of assessing performance or allocating resources, and therefore such information has not been presented.

The following table includes the Company’s financial results by reportable segment, including segment revenues, significant segment expenses (which includes cost of revenues, selling and administrative expenses, and depreciation and amortization), and segment operating income for the thirteen and twenty-six weeks ended February 28, 2026 and March 1, 2025 (in thousands):

 

For
the thirteen weeks ended February 28, 2026

 

Uniform & Facility Service Solutions

 

First Aid & Safety Solutions

 

Other

 

Total

Revenues

 

$568,808

 

$30,793

 

$22,904

 

$622,505

Cost of revenues

 

368,418

 

19,701

 

15,567

 

403,686

Selling and administrative expenses

 

142,328

 

10,811

 

4,274

 

157,413

Depreciation and amortization

 

33,187

 

1,387

 

818

 

35,392

   Operating Income

 

$24,875

 

$(1,106)

 

$2,245

 

$26,014

 

 

 

 

 

 

 

 

 

For
the thirteen weeks ended March 1, 2025

 

Uniform & Facility Service Solutions

 

First Aid & Safety Solutions

 

Other

 

Total

Revenues

 

$551,407

 

$27,454

 

$23,358

 

$602,219

Cost of revenues

 

358,434

 

18,422

 

17,289

 

394,145

Selling and administrative expenses

 

129,567

 

8,571

 

3,776

 

141,914

Depreciation and amortization

 

33,234

 

947

 

765

 

34,946

   Operating Income

 

$30,172

 

$(486)

 

$1,528

 

$31,214

 

 

 

 

 

 

 

 

 

 

For
the twenty-six weeks ended February 28, 2026

 

Uniform & Facility Service Solutions

 

 

First Aid & Safety Solutions

 

 

Other

 

 

Total

 

Revenues

 

$

1,134,700

 

 

$

61,037

 

 

$

48,086

 

 

$

1,243,823

 

Cost of revenues

 

 

725,877

 

 

 

39,014

 

 

 

31,824

 

 

 

796,715

 

Selling and administrative expenses

 

 

275,714

 

 

 

20,973

 

 

 

8,532

 

 

 

305,219

 

Depreciation and amortization

 

 

66,397

 

 

 

2,558

 

 

 

1,612

 

 

 

70,567

 

   Operating Income

 

$

66,712

 

 

$

(1,508

)

 

$

6,118

 

 

$

71,322

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For
the twenty-six weeks ended March 1, 2025

 

Uniform & Facility Service Solutions

 

 

First Aid & Safety Solutions

 

 

Other

 

 

Total

 

Revenues

 

$

1,104,159

 

 

$

53,676

 

 

$

49,292

 

 

$

1,207,127

 

Cost of revenues

 

 

707,741

 

 

 

35,286

 

 

 

32,172

 

 

 

775,199

 

Selling and administrative expenses

 

 

251,382

 

 

 

16,703

 

 

 

7,344

 

 

 

275,429

 

Depreciation and amortization

 

 

66,344

 

 

 

1,832

 

 

 

1,578

 

 

 

69,754

 

   Operating Income

 

$

78,692

 

 

$

(145

)

 

$

8,198

 

 

$

86,745

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table sets forth a reconciliation of total segment operating income to consolidated net income for the thirteen and twenty-six weeks ended February 28, 2026 and March 1, 2025 (in thousands):

 

 

 

Thirteen Weeks Ended

 

 

Twenty-Six Weeks Ended

 

 

 

February 28, 2026

 

 

March 1, 2025

 

 

February 28, 2026

 

 

March 1, 2025

 

Total segment operating income

 

$

26,014

 

 

$

31,214

 

 

$

71,322

 

 

$

86,745

 

Interest expense, net

 

 

(1,576

)

 

 

(2,213

)

 

 

(3,505

)

 

 

(4,908

)

Other expense, net

 

 

250

 

 

 

794

 

 

 

509

 

 

 

1,084

 

Income before income taxes

 

 

27,340

 

 

 

32,633

 

 

 

74,318

 

 

 

90,569

 

Provision for income taxes

 

 

6,856

 

 

 

8,174

 

 

 

19,471

 

 

 

23,005

 

Net income

 

$

20,484

 

 

$

24,459

 

 

$

54,847

 

 

$

67,564