Financial Performance - Consolidated net sales decreased by 7.5%, or $11.2 million, for the three months ended September 30, 2025, compared to the same period in 2024[84]. - Net income for the three months ended September 30, 2025, was $2.7 million, a decrease of 49.2% from $5.4 million in the same period in 2024[82]. - EBITDA decreased to $7.5 million for the three months ended September 30, 2025, down 35.3% from $11.7 million in the prior year[83]. - Consolidated net sales decreased by 0.2% or $0.7 million to $419.6 million for the nine months ended September 30, 2025, compared to $420.3 million in 2024[102]. - Net income fell by 64.3% to $3.5 million for the nine months ended September 30, 2025, down from $9.9 million in 2024, primarily due to lower gross margins across all segments[100]. - EBITDA decreased by 36.1% to $17.1 million for the nine months ended September 30, 2025, compared to $26.8 million in 2024, driven by lower gross margins[101]. Segment Performance - Branded Products segment net sales fell by 8.1%, or $7.5 million, primarily due to timing of orders and lower sales volume[85]. - Healthcare Apparel segment net sales decreased by 4.6%, or $1.5 million, mainly due to volume decreases within existing customer accounts[86]. - Contact Centers segment net sales declined by 9.5%, or $2.4 million, attributed to macroeconomic headwinds affecting client retention[87]. - Branded Products net sales increased by 1.3% or $3.3 million, attributed to a $9.1 million revenue increase from the acquisition of 3 Point[103]. - Healthcare Apparel net sales decreased by 2.0% or $1.8 million, primarily due to volume decreases within existing customer accounts[104]. - Contact Centers net sales decreased by 3.5% or $2.6 million, reflecting macroeconomic headwinds leading to client downsizing[105]. Margins and Expenses - Consolidated gross margin rate was 38.3% for the three months ended September 30, 2025, down from 40.4% in the prior year[88]. - Gross margin rate declined to 37.9% for the nine months ended September 30, 2025, from 39.6% in 2024, with decreases noted in all reportable segments[106]. - Selling and administrative expenses as a percentage of net sales remained stable at 35.0% for both periods[91]. - Selling and administrative expenses as a percentage of net sales increased to 36.0% for the nine months ended September 30, 2025, from 35.7% in 2024[110]. Interest and Tax Expenses - Interest expense decreased to $1.4 million for the three months ended September 30, 2025, from $1.6 million in the same period in 2024, due to a lower average interest rate[96]. - Interest expense decreased by 20.9% to $3.9 million for the nine months ended September 30, 2025, down from $4.9 million in 2024, due to a lower average interest rate[114]. - Income tax expense decreased to $0.4 million for the three months ended September 30, 2025, with an effective tax rate of 13.9% compared to 17.8% in the prior year[97]. Cash Dividends - The Company paid cash dividends of $6.7 million during the nine months ended September 30, 2025, compared to $7.0 million in 2024[127]. Impairment Testing and Accounting Estimates - The Company performed its annual impairment test for indefinite-lived intangible assets as of August 31, 2025, which did not result in any impairment[134]. - Key assumptions for the impairment test included expected cash flows based on a detailed multi-year forecast, royalty rates of 0.75% - 3.0%, a tax rate of 27.0%, a long-term growth rate of 3.0%, and discount rates of 14.5% - 16.5%[134]. - The Company has not made any material changes to its critical accounting estimates since the last annual report, except for the timing of annual impairment tests, which has been moved to August 31[130][131]. Internal Controls and Risks - The Company’s internal controls over financial reporting were evaluated and deemed effective as of the end of the reporting period[142]. - There were no changes in the Company's internal control over financial reporting during the quarter ended September 30, 2025, that materially affected its effectiveness[143]. - The Company anticipates potential risks including competition, supply disruptions, and economic conditions that may impact future performance[140]. Forward-Looking Statements - Forward-looking statements include projections of revenue and income, as well as plans for cash management and business operations[139]. Non-GAAP Measures - The Company emphasizes that EBITDA is a non-GAAP financial measure and should not be considered in isolation from net income or cash flows from operating activities[136][137].

Financial Performance - Total net sales for Q3 2025 were $138.5 million, a decrease of 7.9% from $149.7 million in Q3 2024[1][3] - Net income for Q3 2025 was $2.7 million, down 50% from $5.4 million in Q3 2024, resulting in diluted earnings per share of $0.18 compared to $0.33[1][3] - EBITDA for Q3 2025 was $7.5 million, a decline of 36% from $11.7 million in the same quarter last year[1][3] - Net income for the nine months ended September 30, 2025, was $3,537,000, a decrease from $9,915,000 in the same period of 2024[17] - EBITDA for the nine months ended September 30, 2025, was $17,147,000, compared to $26,844,000 for the same period in 2024, reflecting a decline of approximately 36%[19] - Total net sales for the nine months ended September 30, 2025, were $419,609,000, slightly down from $420,268,000 in 2024[22] - The gross margin for the nine months ended September 30, 2025, was $158,845,000, compared to $166,618,000 in 2024, indicating a decrease of about 4.7%[22] - Cash flows from operating activities for the nine months ended September 30, 2025, were $1,270,000, significantly lower than $24,497,000 in 2024[17] - The company reported a net cash decrease of $2,115,000 for the nine months ended September 30, 2025, compared to a decrease of $1,523,000 in 2024[17] Cost Management - Selling, general and administrative expenses (SG&A) were reduced to $48.5 million in Q3 2025 from $52.4 million in Q3 2024, indicating improved cost management[2][3] Dividends and Shareholder Value - The Board of Directors declared a quarterly dividend of $0.14 per share, consistent with the previous quarter[1][4] - The company emphasized its commitment to long-term shareholder value through strategic investments and maintaining a strong balance sheet[2][10] Balance Sheet and Liabilities - Total current assets increased to $280.0 million as of September 30, 2025, compared to $273.1 million at the end of 2024[1][15] - Total liabilities rose to $221.4 million as of September 30, 2025, compared to $216.3 million at the end of 2024[1][15] - Borrowings under revolving lines of credit increased to $76,000,000 in 2025 from $31,000,000 in 2024[17] Share Repurchase and Credit Loss - The company repurchased and retired common shares worth $7,928,000 during the nine months ended September 30, 2025, compared to $6,346,000 in 2024[17] - The company experienced a credit loss expense of $2,347,000 for the nine months ended September 30, 2025, compared to $251,000 in 2024[17] Outlook - The full-year revenue outlook has been updated to a range of $560 million to $570 million, down from the previous range of $550 million to $575 million[1][5] - The EBITDA margin for the nine months ended September 30, 2025, was 4.1%, down from 6.4% in 2024[19] - The company reported pretax earnings of $3.2 million for Q3 2025, compared to $6.6 million in Q3 2024, reflecting a significant decline[1][3]

Core Insights - The company reported total net sales of $138.5 million for Q3 2025, a decrease from $149.7 million in Q3 2024, indicating a year-over-year decline of approximately 7.9% [1][3] - Net income for Q3 2025 was $2.7 million, down from $5.4 million in the same quarter last year, reflecting a decline of about 50% [1][3] - EBITDA for Q3 2025 was $7.5 million, compared to $11.7 million in Q3 2024, representing a decrease of approximately 36% [1][3][20] - The Board of Directors declared a quarterly dividend of $0.14 per share, payable on November 28, 2025 [4] Financial Performance - For the third quarter ended September 30, 2025, net sales were $138.5 million, down from $149.7 million in Q3 2024 [3] - Pretax earnings were $3.2 million compared to $6.6 million in Q3 2024 [3] - Net earnings were $2.7 million or $0.18 per diluted share, compared to $5.4 million or $0.33 per diluted share in Q3 2024 [3][20] Dividend Declaration - The Board approved a quarterly dividend of $0.14 per share, with a record date of November 14, 2025 [4] Full-Year Outlook - The company updated its full-year revenue outlook range from $550 million to $575 million to a new range of $560 million to $570 million [5] Management Commentary - The CEO noted solid sequential progress from the second quarter and emphasized improvements in selling, general, and administrative expenses, which are expected to enhance future profitability [2] - The company is leveraging its diverse supply base and competitive advantages to drive growth despite current economic uncertainties [2]

Core Viewpoint - Superior Group of Companies, Inc. will announce its third quarter 2025 operational results on November 3, 2025, after market close, followed by a teleconference to discuss the results [1]. Group 1: Upcoming Financial Results - The company will release its third quarter 2025 results after market close on November 3, 2025 [1]. - A teleconference will be hosted by the CEO and CFO at 5:00 pm Eastern Time on the same day to discuss the results [1]. Group 2: Teleconference Access - The teleconference can be accessed via a live webcast and archived replay on the company's investor relations website [2]. - Dial-in numbers for the teleconference include 1-844-861-5505 for U.S. callers, 1-412-317-6586 for international callers, and 1-866-605-3852 for Canadian toll-free access [2]. Group 3: Replay Information - A telephone replay of the teleconference will be available until November 17, 2025 [3]. - Replay access can be obtained by dialing 1-877-344-7529 in the U.S. or 1-412-317-0088 internationally, with a Canadian number of 855-669-9658 [3]. Group 4: Company Overview - Superior Group of Companies, established in 1920, operates in three business segments: Healthcare Apparel, Branded Products, and Contact Centers [4]. - The company focuses on creating brand engagement experiences and emphasizes service, quality, advanced technology, and omnichannel commerce as competitive advantages [4]. - The company aims to enhance shareholder value through organic growth and strategic acquisitions [4].

Summary of Superior Group of Companies Conference Call (October 08, 2025) Company Overview - **Company**: Superior Group of Companies (NasdaqGM: SGC) - **Industry**: Healthcare apparel, branded products, and contact center services - **Market Position**: One of the largest and oldest providers in healthcare apparel, with a diversified business model across three segments [2][5][10] Core Business Segments 1. **Healthcare Apparel** - Focuses on both consumer and institutional markets - Major brands include Wink and Fashion Seal Healthcare - Total Addressable Market (TAM) estimated at over $4 billion, with significant growth potential [6][8] - Over 2 million people wear their healthcare apparel daily [6] 2. **Branded Products** - Provides promotional products and logoed uniforms - Industry size approximately $26 billion with over 25,000 competitors in the U.S. - Achieved a position among the top 10 largest branded distributors in the U.S. within nine years [8][9] 3. **Contact Center Services** - Operates as The Office Gurus, focusing on nearshore contact centers in El Salvador, Belize, and the Dominican Republic - Market size exceeds $100 billion in the U.S. - Fastest growing segment with a five-year sales growth rate of 22% and an EBITDA margin of 12.6% [10][11] Financial Performance - **Revenue Growth**: - Total revenues in 2024 were $566 million, up from $196 million in 2014, reflecting an annualized growth rate of 11% [11][12] - Average annual growth rate of 8% across all segments [3] - Second quarter revenue increased by 14% [17] - **Dividends and Share Repurchases**: - Consistent dividend payments since 1977, with a current yield of about 6% [12][30] - Share repurchase authorization of up to $17.5 million, with $7 million spent this year [31] Market Dynamics and Challenges - **Macro Environment**: - Political uncertainty and tariffs have impacted purchasing behavior, particularly in the branded products segment [15][16] - The healthcare apparel market remains steady, with ongoing demand for uniforms [18] - Contact center services are experiencing high demand, with a full pipeline of new business opportunities [19] - **Customer Sentiment**: - There is still some uncertainty affecting purchasing decisions, but overall sentiment is improving [21][22] Strategic Initiatives - **Capital Allocation**: - Focus on maintaining a leverage ratio of 2–2.5x EBITDA to allow for flexibility in share buybacks and investments [28][29] - Prioritizing organic growth investments and strategic acquisitions to spur growth in branded products and contact center segments [29] - **AI Integration**: - Early adoption of AI technology in contact center operations to enhance customer interactions and improve efficiency [24][25] - AI is being used to coach agents and improve service quality, leading to better customer satisfaction [25][26] Future Outlook - **Growth Opportunities**: - Significant potential for growth in the branded products segment due to its fragmented nature [32] - Interest in expanding contact center services into new geographies and business lines [32][33] - Potential for margin improvement across all segments through cost reductions and enhanced selling capabilities [35] Conclusion - Superior Group of Companies presents a compelling investment opportunity with diversified business segments, strong financial performance, and a focus on growth through strategic initiatives and market expansion [36]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Summary of Superior Group of Companies Conference Call Company Overview - **Company Name**: Superior Group of Companies (NasdaqGM: SGC) - **Date of Conference**: September 18, 2025 - **Key Speakers**: Mike Koempel (CFO), Michael Benstock (Chairman and CEO) - **Company History**: Founded over 100 years ago, with a focus on three diversified segments [2][3] Industry Segments 1. **Healthcare Apparel** - Largest provider of healthcare apparel in the U.S., serving over 12 million healthcare professionals [5][6] - Total Addressable Market (TAM) estimated at over $4 billion, with significant growth opportunities [9] - Key brands include Wink and Fashion Seal Healthcare, with a strong omnichannel distribution strategy [8][10] 2. **Branded Products** - This segment is the largest, providing promotional products and logoed uniforms to major U.S. companies [11] - The branded products industry is approximately $26 billion, with SGC ranking among the top 10 largest branded distributors [14] - Notable clients include Taco Bell, Dunkin', Tesla, Walmart, and CVS, focusing on high-quality merchandise rather than low-value items [12][13] 3. **Contact Centers (The Office Gurus)** - Operates nearshore contact centers in El Salvador, Belize, the Dominican Republic, and Florida [19][20] - Fastest growing segment with a cumulative adjusted growth of 22% through 2024 and an EBITDA margin of 12.6% [22] - Market share is minimal, focusing on small to medium-sized businesses, with a total market exceeding $100 billion in the U.S. [22] Financial Highlights - **Revenue**: Consolidated revenues were $566 million, with a CAGR of 8% since 2019 [4] - **2025 Guidance**: Projected sales range of $550 to $575 million, indicating continued growth across all segments [24] - **Balance Sheet**: Net leverage ratio improved to about 1.7 times EBITDA, with a target range of 2 to 2.5 times [37][38] - **Dividends**: Uninterrupted dividend payments since 1977, with a yield of 4% to 5% [41][42] Strategic Initiatives - **Cost-Savings Plan**: Announced a $13 million reduction in annualized budgeted expenses, with expected benefits to be fully realized by 2026 [45][46] - **AI Integration**: Implementing AI across contact center services to enhance efficiency and customer loyalty, with 35 customers already utilizing the AI stack [34][35] - **Share Repurchase Program**: Initiated in August 2024, with $15 million of stock repurchased, balancing investments and share buybacks [38] Market Dynamics - **Customer Sentiment**: Improvement noted in the second quarter of 2025, with a 14% increase in branded products sales compared to the first quarter [42] - **Tariff Impact**: Initial concerns over tariffs have subsided, leading to increased willingness among customers to proceed with purchasing decisions [42][43] - **Sales Team Expansion**: Plans to expand and upskill sales teams across all business segments in 2026 [47][48] Conclusion - Superior Group of Companies is positioned for growth across its diversified segments, with a strong focus on customer retention, strategic investments, and leveraging technology to enhance operational efficiency. The company maintains a solid financial foundation and is committed to returning value to shareholders through dividends and share repurchases.

Core Viewpoint - Superior Group of Companies, Inc. has appointed Michael W. Koempel as President while he continues as Chief Financial Officer, reflecting the company's commitment to operational excellence and strategic growth [1][3]. Group 1: Leadership Changes - Michael W. Koempel has been appointed as President of Superior Group of Companies, effective immediately, while retaining his role as Chief Financial Officer [1]. - The three segment presidents will now report directly to Koempel in his new capacity [1]. Group 2: Leadership Experience - Koempel brings over 33 years of experience in financial, operational, governance, and strategic leadership, with a history of scaling high-growth apparel and retail brands [2]. - Prior to joining Superior Group, Koempel held significant leadership roles at IT'SUGAR®, Victoria's Secret Lingerie, and Mast Global [2]. Group 3: Company Strategy and Vision - The Chairman and CEO, Michael Benstock, emphasized Koempel's instrumental role in navigating challenges and strengthening the company's financial foundation over the past three years [3]. - Koempel expressed commitment to unlocking the potential of each business segment and driving growth, operational excellence, and shareholder value [3]. - Superior Group of Companies aims to enhance shareholder value through organic growth and strategic acquisitions across its three business segments: Healthcare Apparel, Branded Products, and Contact Centers [4].

Group 1 - Superior Group of Companies, Inc. will participate in a fireside chat at the Sidoti Virtual Investor Conference on September 18, 2025, at 10:45 AM Eastern Time [1] - The live webcast and replay of the conference will be available on the company's Investor Relations website [1] - Management will also host virtual meetings throughout the day of the conference [1] Group 2 - Superior Group of Companies was established in 1920 and consists of three business segments: Healthcare Apparel, Branded Products, and Contact Centers [2] - Each segment serves large, fragmented, and growing addressable markets, enabling businesses to create extraordinary brand engagement experiences [2] - The company emphasizes service, quality, advanced technology, and omnichannel commerce as competitive advantages [2] - Superior Group of Companies is committed to enhancing shareholder value through organic growth and strategic acquisitions [2]

Group 1 - Superior Group (SGC) shares have increased by 18.5% over the past four weeks, closing at $13.01, with a mean price target of $18 indicating a potential upside of 38.4% [1] - The average price targets range from a low of $14.00 to a high of $24.00, with a standard deviation of $4, suggesting a variability in analyst estimates [2] - Analysts show strong agreement on SGC's ability to report better earnings, with a positive trend in earnings estimate revisions correlating with potential stock price increases [4][11] Group 2 - Over the last 30 days, the Zacks Consensus Estimate for SGC's current year earnings has increased by 16.4%, with two estimates moving higher and no negative revisions [12] - SGC holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] - While consensus price targets may not be entirely reliable, the direction they imply appears to be a good guide for potential price movement [14]