SGC earnings analysis
What we found in SGC's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
SGC delivered 2.6% year-over-year revenue growth to $147.836 million and a 26.6% increase in adjusted EBITDA to $7.676 million, led by Branded Products. Reported profitability was weaker: gross margin declined 40 basis points to 38.0%, net income fell 21.3% to $1.221 million, and GAAP diluted EPS was $0.08, affected by a $2.600 million Healthcare Apparel tradename impairment. First-half cash flow improved substantially to $17.7 million, but mixed segment trends, tariff uncertainty, and Healthcare Apparel weakness support a neutral view.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth led by Branded Products
- Second-quarter consolidated net sales increased $3.791 million, or 2.6%, to $147.836 million from $144.045 million. Branded Products contributed $98.390 million of sales, up $5.743 million (6.2%).
- Adjusted EBITDA and cost leverage improved
- Adjusted EBITDA increased 26.6% to $7.676 million from $6.064 million, while consolidated selling and administrative expense declined $0.913 million to $51.327 million.
- Branded Products margin expanded
- Branded Products gross margin expanded 90 basis points to 36.5% from 35.6%, driven by favorable pricing and customer mix. Segment gross profit increased $2.856 million, or 8.7%, to $35.872 million.
- Cash conversion strengthened materially
- Six-month operating cash flow rose to $17.7 million from $2.9 million, as collections and reduced inventory purchasing produced $2.4 million of cash versus $10.7 million of inventory-related cash outflows in the prior-year period. Six-month capex was $1.9 million, down from $2.7 million.
- Liquidity actions included debt reduction and returns
- The company paid down $35.0 million on its revolving credit facility and $2.8 million on its term loan during the first six months. It also paid $4.4 million of dividends and retained $9.312 million of share-repurchase authorization at June 30.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Impairment reduced reported earnings
- GAAP net income declined 21.3% to $1.221 million from $1.551 million, and diluted EPS was $0.08. Results included a $2.600 million Healthcare Apparel tradename impairment tied to lower expected future sales and profitability.
- Healthcare Apparel profitability deteriorated
- Healthcare Apparel sales fell $1.022 million (3.6%) to $27.231 million and its gross margin declined 260 basis points to 32.9%. The segment absorbed a $2.6 million inventory write-down, partly offset by $1.8 million of net tariff refunds.
- Contact Centers faces attrition and cost pressure
- Contact Centers sales decreased $0.883 million (3.7%) to $23.094 million as client attrition exceeded new-customer growth; its gross margin declined to 50.9% from 52.6% because of higher employee-related costs.
- Trade-policy uncertainty persists
- Item 1A states there were no material changes to risk factors, but tariff exposure remains material: new Section 301 tariffs generally ranging from 10.0% to 12.5% became effective July 24, 2026, while AGOA/HOPE/HELP extensions expire in December 2026.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.08
- Gross margin
- 38%
- Operating margin
- 1.5%
- Segment
- Branded Products: $98.390 million, up $5.743 million (6.2%) year over year
- Segment
- Healthcare Apparel: $27.231 million, down $1.022 million (3.6%) year over year
- Segment
- Contact Centers: $23.094 million, down $0.883 million (3.7%) year over year
- Segment
- Intersegment eliminations: $(0.879) million; consolidated net sales: $147.836 million
What they said about what is next.
The 10-Q does not provide quantitative sales or EPS guidance in MD&A; outlook was deferred to communications outside this filing.
The filing reads about the same as the one before it.
What came before.
- 10-Q · May 4, 2026
- Superior Group of Companies reported Q1 2026 results with net sales of $140.9 million, surpassing last year's $137.1 million and slightly exceeding estimates of $138.5 million. The company achieved a net income of $0.8…
- 10-K · March 3, 2026
- Superior Group reports a modest recovery in cash generation and a Q4 beat as Branded Products grew to ~64% of net sales. The 10-K emphasizes a three‑segment strategy (Branded Products, Healthcare Apparel, Contact…
- 10-Q · May 8, 2025
- Superior Group reported first-quarter net sales of $137,097,000 (down $1,745,000 or ~1.3% year-over-year) and a net loss of $(758,000) or $(0.05) diluted EPS. Gross margin compressed to 36.8% (from 39.8% a year ago) and…
- 10-Q · November 7, 2024
- Superior Group reported a quarter of revenue growth and margin expansion: net sales increased to $149.69 million and diluted EPS rose to $0.33, with net income of $5.403 million for the three months ended September 30,…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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