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…
Earnings analysis · 10-Q
SGC earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.08
What stood out
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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%).
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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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.
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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.
Management's outlook
The 10-Q does not provide quantitative sales or EPS guidance in MD&A; outlook was deferred to communications outside this filing.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.