Will UniFirst Corporation (UNF) be Able to Normalize its Margins Over Time?
The London Company, an investment management company, released “The London Company Mid Cap Strategy” second quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund returned 10.3% gross (10.2% net) compared to a 4.8% return for the Russell Midcap Index. The portfolio outperformed the benchmark in a strong market environment, despite headwinds from factor performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
The London Company Mid Cap Strategy highlighted stocks like UniFirst Corporation (NYSE:UNF) in the second quarter 2023 investor letter. Headquartered in Wilmington, Massachusetts, UniFirst Corporation (NYSE:UNF) is a workplace uniforms and protective workwear clothing provider. On August 2, 2023, UniFirst Corporation (NYSE:UNF) stock closed at $166.15 per share. One-month return of UniFirst Corporation (NYSE:UNF) was 9.87%, and its shares lost 13.63% of their value over the last 52 weeks. UniFirst Corporation (NYSE:UNF) has a market capitalization of $3.106 billion.
The London Company Mid Cap Strategy made the following comment about UniFirst Corporation (NYSE:UNF) in its second quarter 2023 investor letter:
"UniFirst Corporation (NYSE:UNF) - UNF experienced a challenging environment with higher costs (rental garments and one-time items), and management reduced guidance reflecting sustained cost pressures. Margins remain meaningfully compressed relative to pre-pandemic levels. On a positive note, pricing remains strong, as customers seem to understand the justification of higher cost of service. We believe UNF should be able to normalize margin over time, due to the oligopolistic nature of the industry."
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UniFirst Corporation (NYSE:UNF) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held UniFirst Corporation (NYSE:UNF) at the end of first quarter which was 9 in the previous quarter.
We discussed UniFirst Corporation (NYSE:UNF) in another article and shared The London Company Mid Cap Strategy’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
