UniFirst Corporation (NYSE:UNF) Q2 2024 Earnings Call Transcript

Steven Sintros: Yes. I think certainly I made the comments in my prepared remarks that when you change the system like we had there’s a lot of learning, there’s a lot of change management I think the teams are becoming much more comfortable kind of optimizing the use of the new system and we’ve always talked about that one of the areas that we expect the benefit from with the CRM is sort of increased merchandise management with kind of a more sophisticated barcode technology and some other controls and I think that’s partially maybe what we’re starting to see with the improvements in merchandise. I think over the last couple years as we were deploying the new system. There was probably incrementally some additional cost as we transitioned and re-bar coded a lot of our garments, but we’re through most of that now, and I think we expect that to start to smooth out.

So I think that’s one of the biggest areas, and I just think the efficiency in kind of the day-to-day planned operations, I mean, when you think about our cost structure, merchandise is such a big part of it, and then efficiency in the plans as well. And then we’ve always said kind of the service execution side of it with the automation we’re giving our route drivers is a big part, and although there was change management, we have been happy with the adoption of the new technology by our frontline service workers, and I think the more they continue to get comfortable with that, it’s just going to provide for that enhanced customer experience, which will help our overall growth over time.

Operator: Thank you. I’m showing no further questions in the queue. I would now like to turn the call back over to Steven for closing remarks.

Steven Sintros: Well, thank you. I’d like to thank everyone for joining us today to review our second quarter results, and we look forward to speaking with you again in June when we expect to be reporting our third quarter performance. Thank you, and have a great day.

Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for your participation. You may now disconnect.