Despite the slowdown in the first quarter, TrueBlue Inc. (NYSE: TBI) still reported results as expected. CEO Steve Cooper noted that the PeopleReady business was the first to feel the impact of the macroeconomic conditions, with the PeopleScout and PeopleManagement following suit. To respond to the slowdown, they took actions to reduce costs in their businesses, while still pricing services in a disciplined manner.
The company has forecasted a 10-14% year-over-year revenue drop for the second quarter, and a decrease in gross margin of 20-60 basis points. TrueBlue shares were down 16.0% on the day, setting a new low when they reached $14.20. With a market cap of $553.8 million, investors are watching to see how the company performs in the coming months.