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Superior Group of Companies Reports Third Quarter 2025 Results

1. SGC's Q3 2025 net sales dropped to $138.5 million. 2. Net income fell to $2.7 million from $5.4 million YoY. 3. The board approved a $0.14 quarterly dividend for shareholders. 4. Revenue outlook for 2025 adjusted to $560-$570 million range. 5. SGC continues to seek growth despite volatile market conditions.

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FAQ

Why Bearish?

The drop in both sales and net income indicates declining performance. Historical data shows that consistent revenue drops often lead to negative market sentiment.

How important is it?

The article details key metrics that influence SGC's market perception and investor confidence. Changes in dividends and performance can shift market valuations.

Why Short Term?

Immediate effects from lower earnings and sales could lead to quick negative responses from investors. Companies like SGC have faced similar market reactions in the past.

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SGC
November 03, 2025 16:05 ET  | Source: Superior Group of Companies – Total net sales of $138.5 million, compared to $149.7 million in prior year third quarter –– Net income of $2.7 million, compared to $5.4 million in prior year third quarter –– EBITDA of $7.5 million, compared to $11.7 million in prior year third quarter –– Board of Directors approves $0.14 per share quarterly dividend –  ST. PETERSBURG, Fla., Nov. 03, 2025 (GLOBE NEWSWIRE) -- Superior Group of Companies, Inc. (NASDAQ: SGC) (the “Company”), today announced its third quarter 2025 results. “Our earnings were as expected, demonstrating solid sequential progress from the second quarter and our updated full-year outlook reflects a higher mid-point,” said Michael Benstock, Chief Executive Officer. “We were also able to meaningfully improve SG&A, which bodes well for future profitability as greater economic clarity emerges. For now, our enhanced selling capabilities and competitive advantages continue to drive growth in our business pipelines, even during this period of volatile trade policy and uncertainty for customers and prospects. We are leveraging our diverse supply base and offering alternative products and solutions, while also benefiting from our own diversity across business segments and the end markets we serve. With our strong balance sheet, we can invest for future growth while paying an attractive dividend as we work to create long-term shareholder value.” Third Quarter Results For the third quarter ended September 30, 2025, net sales were $138.5 million, compared to third quarter 2024 net sales of $149.7 million. Pretax earnings of $3.2 million compared to $6.6 million in the third quarter of 2024. Net earnings of $2.7 million or $0.18 per diluted share compared to net income of $5.4 million or $0.33 per diluted share for the third quarter of 2024. Third Quarter 2025 Dividend The Board of Directors declared a quarterly dividend of $0.14 per share, payable November 28, 2025 to shareholders of record as of November 14, 2025. 2025 Full-Year Outlook The Company is updating its full-year revenue outlook range from $550 million to $575 million to $560 million to $570 million. Webcast and Conference Call The Company will host a webcast and conference call at 5:00 pm Eastern Time today. The live webcast and archived replay can be accessed in the investor relations section of the Company's website at https://ir.superiorgroupofcompanies.com/Presentations. Interested individuals may also join the teleconference by dialing 1-844-861-5505 for U.S. dialers and 1-412-317-6586 for International dialers. The Canadian toll-free number is 1-866-605-3852. Please ask to be joined to the Superior Group of Companies call. A telephone replay of the teleconference will be available through November 17, 2025. To access the replay, dial 1-877-344-7529 in the United States or 1-412-317-0088 from international locations. Canadian dialers can access the replay at 855-669-9658. Please reference conference number 6514610 for replay access. Disclosure Regarding Forward Looking Statements Certain matters discussed in this press release are “forward-looking statements” intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified by use of the words “may,” “will,” “should,” “could,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” “project,” “potential,” or “plan” or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements in this press release may include, without limitation: (1) projections of revenue, income, and other items relating to our financial position and results of operations, including short term and long term plans for cash, (2) statements of our plans, objectives, strategies, goals and intentions, (3) statements regarding the capabilities, capacities, market position and expected development of our business operations and (4) statements of expected industry and general economic trends. Such forward-looking statements are subject to certain risks and uncertainties that may materially adversely affect the anticipated results. Such risks and uncertainties include, but are not limited to, the following: the impact of competition; the effect of existing and/or new or expanded tariffs, uncertainties related to supply disruptions, inflationary environment (including with respect to the cost of finished goods and raw materials and shipping costs), employment levels (including labor shortages), and general economic and political conditions in the areas of the world in which the Company operates or from which it sources its supplies or the areas of the United States of America (“U.S.” or “United States”) in which the Company’s customers are located; changes in the healthcare, retail chain, food service, transportation and other industries where uniforms and service apparel are worn; our ability to identify suitable acquisition targets, discover liabilities associated with such businesses during the diligence process, successfully integrate any acquired businesses, or successfully manage our expanding operations; the price and availability of raw materials; attracting and retaining senior management and key personnel; the effect of the Company’s previously disclosed material weakness in internal control over financial reporting; the Company may identify a material weakness in internal control in the future, which could result in us not preventing or detecting on a timely basis a material misstatement of the Company’s financial statements and to maintain effective internal control over financial reporting; and other factors described in the Company’s filings with the Securities and Exchange Commission, including those described in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and the Quarterly Report on Form 10-Q for the quarter ended September 30, 2025. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements made herein and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and we disclaim any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances, except as may be required by law. About Superior Group of Companies, Inc. (SGC): Established in 1920, Superior Group of Companies is comprised of three attractive business segments each serving large, fragmented and growing addressable markets. Across Healthcare Apparel, Branded Products and Contact Centers, each segment enables businesses to create extraordinary brand engagement experiences for their customers and employees. SGC’s commitment to service, quality, advanced technology, and omnichannel commerce provides unparalleled competitive advantages. We are committed to enhancing shareholder value by continuing to pursue a combination of organic growth and strategic acquisitions. For more information, visit www.superiorgroupofcompanies.com. Investor Relations Contact:Investors@Superiorgroupofcompanies.com  SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited)(In thousands, except shares and per share data)         Three Months Ended September 30,  Nine Months Ended September 30,   2025  2024  2025  2024 Net sales $138,467  $149,690  $419,609  $420,268                  Costs and expenses:                Cost of goods sold  85,389   89,144   260,764   253,650 Selling and administrative expenses  48,513   52,404   150,855   149,906 Interest expense, net  1,378   1,569   3,873   4,897    135,280   143,117   415,492   408,453 Income before income tax expense  3,187   6,573   4,117   11,815 Income tax expense  443   1,170   580   1,900 Net income $2,744  $5,403  $3,537  $9,915                  Net income per share:                Basic $0.19  $0.34  $0.24  $0.62 Diluted $0.18  $0.33  $0.23  $0.60                  Weighted average shares outstanding during the period:                Basic  14,738,863   16,107,549   15,050,834   16,118,885 Diluted  15,119,050   16,543,990   15,422,144   16,588,914                  Cash dividends per common share $0.14  $0.14  $0.42  $0.42                    SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(In thousands, except shares and par value data)         September 30,  December 31,   2025  2024   (Unaudited)     ASSETS        Current assets:        Cash and cash equivalents $16,651  $18,766 Accounts receivable, net  97,415   95,092 Inventories  105,655   96,675 Contract assets  48,623   51,688 Prepaid expenses and other current assets  11,685   10,831 Total current assets  280,029   273,052 Property, plant and equipment, net  38,830   41,879 Operating lease right-of-use assets  12,726   15,567 Deferred tax asset  13,828   13,835 Intangible assets, net  48,440   51,137 Goodwill  2,434   2,304 Other assets  18,985   17,360 Total assets $415,272  $415,134          LIABILITIES AND SHAREHOLDERS’ EQUITY        Current liabilities:        Accounts payable $45,727  $50,942 Other current liabilities  42,902   44,367 Current portion of long-term debt  6,094   5,625 Current portion of acquisition-related contingent liabilities  648   814 Total current liabilities  95,371   101,748 Long-term debt  93,906   80,410 Long-term pension liability  13,614   13,315 Long-term acquisition-related contingent liabilities  743   935 Long-term operating lease liabilities  7,875   10,486 Other long-term liabilities  9,927   9,384 Total liabilities  221,436   216,278 Shareholders’ equity:        Preferred stock, $.001 par value - authorized 300,000 shares (none issued)  -   - Common stock, $.001 par value - authorized 50,000,000 shares, issued and outstanding 15,968,792 and 16,484,921 shares, respectively  15   16 Additional paid-in capital  84,541   84,060 Retained earnings  112,561   120,139 Accumulated other comprehensive loss, net of tax:  (3,281)  (5,359)Total shareholders’ equity  193,836   198,856 Total liabilities and shareholders’ equity $415,272  $415,134            SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)(In thousands)      Nine Months Ended September 30,   2025  2024 CASH FLOWS FROM OPERATING ACTIVITIES        Net income $3,537  $9,915 Adjustments to reconcile net income to net cash provided by operating activities:        Depreciation and amortization  9,157   9,872 Inventory write-downs  1,793   1,893 Credit loss expense  2,347   251 Share-based compensation expense  3,916   2,905 Change in fair value of acquisition-related contingent liabilities  659   363 Non-cash operating lease expense  2,843   1,625 Other, net  244   653 Changes in assets and liabilities, net of acquisition of a business:        Accounts receivable  (3,710)  3,891 Contract assets  3,326   (1,671)Inventories  (10,535)  2,241 Prepaid expenses and other current assets  (423)  (1,292)Other assets  (1,692)  (959)Accounts payable and other current liabilities  (10,636)  (5,917)Payment of acquisition-related contingent liabilities  (791)  (686)Other long-term liabilities  1,235   1,413 Net cash provided by operating activities  1,270   24,497          CASH FLOWS FROM INVESTING ACTIVITIES        Additions to property, plant and equipment  (3,407)  (2,911)Net cash used in investing activities  (3,407)  (2,911)         CASH FLOWS FROM FINANCING ACTIVITIES        Borrowings under revolving lines of credit  76,000   31,000 Payments under revolving lines of credit  (58,000)  (37,000)Payments of term loan  (4,218)  (3,281)Payment of cash dividends  (6,713)  (6,994)Payment of acquisition-related contingent liabilities  (226)  (897)Proceeds received on exercise of stock options and payments for shares withheld for taxes  90   1,118 Common shares repurchased and retired  (7,928)  (6,346)Net cash used in financing activities  (995)  (22,400)         Effect of currency exchange rates on cash  1,017   (709)Net decreases in cash and cash equivalents  (2,115)  (1,523)Cash and cash equivalents balance, beginning of period  18,766   19,896 Cash and cash equivalents balance, end of period $16,651  $18,373            SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIESNON-GAAP FINANCIAL MEASURES(Unaudited)(In thousands)         Three Months Ended September 30,  Nine Months Ended September 30,   2025  2024  2025  2024 Net income $2,744  $5,403  $3,537  $9,915 Interest expense, net  1,378   1,569   3,873   4,897 Income tax expense  443   1,170   580   1,900 Depreciation and amortization  2,975   3,252   9,157   9,872 Impairment charge  -   260   -   260 EBITDA(1) $7,540  $11,654  $17,147  $26,844 EBITDA margin(1)  5.4%  7.8%  4.1%  6.4%                  (1) EBITDA, which is a non-GAAP financial measure, is defined as net income excluding interest expense, net, income tax expense and depreciation and amortization expense. EBITDA margin is defined as EBITDA divided by net sales. The Company believes EBITDA is an important measure of operating performance because it allows management, investors and others to evaluate and compare the Company’s core operating results from period to period by removing (i) the impact of the Company’s capital structure (interest expense from outstanding debt), (ii) tax consequences and (iii) asset base (depreciation and amortization). The Company uses EBITDA internally to monitor operating results and to evaluate the performance of its business. In addition, the compensation committee has used EBITDA in evaluating certain components of executive compensation, including performance-based annual incentive programs. EBITDA is not a measure of financial performance under GAAP.  EBITDA should not be considered in isolation or as an alternative to net income, cash flows from operating activities or any other measure determined in accordance with GAAP. The items excluded to calculate EBITDA are significant components in understanding and assessing the Company’s results of operations. The Company’s EBITDA may not be comparable to a similarly titled measure of another company because other entities may not calculate EBITDA in the same manner.  SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIESSUPPLEMENTAL INFORMATION - REPORTABLE SEGMENTS(Unaudited)(In thousands)                     Branded Products  Healthcare Apparel  Contact Centers  Intersegment Eliminations  Other  Total For the Three Months Ended September 30, 2025:                        Net sales $85,095  $31,520  $22,664  $(812) $-  $138,467 Cost of goods sold  55,466   19,394   10,669   (140)  -   85,389 Gross margin  29,629   12,126   11,995   (672)  -   53,078 Selling and administrative expenses  23,501   9,779   10,283   (672)  5,622   48,513 Depreciation and amortization  1,396   832   661   -   86   2,975 Segment EBITDA(1) $7,524  $3,179  $2,373  $-  $(5,536) $7,540                            Branded Products  Healthcare Apparel  Contact Centers  Intersegment Eliminations  Other  Total For the Three Months Ended September 30, 2024:                        Net sales $92,547  $33,025  $25,038  $(920) $-  $149,690 Cost of goods sold  59,037   19,216   11,296   (405)  -   89,144 Gross margin  33,510   13,809   13,742   (515)  -   60,546 Selling and administrative expenses  24,223   11,240   11,482   (515)  5,974   52,404 Impairment charge  -   260   -   -   -   260 Depreciation and amortization  1,446   944   770   -   92   3,252 Segment EBITDA(1) $10,733  $3,773  $3,030  $-  $(5,882) $11,654                            Branded Products  Healthcare Apparel  Contact Centers  Intersegment Eliminations  Other  Total For the Nine Months Ended September 30, 2025:                        Net sales $264,216  $87,036  $70,866  $(2,509) $-  $419,609 Cost of goods sold  173,884   54,761   33,277   (1,158)  -   260,764 Gross margin  90,332   32,275   37,589   (1,351)  -   158,845 Selling and administrative expenses  72,353   29,383   32,816   (1,351)  17,654   150,855 Depreciation and amortization  4,271   2,598   2,022   -   266   9,157 Segment EBITDA(1) $22,250  $5,490  $6,795  $-  $(17,388) $17,147                            Branded Products  Healthcare Apparel  Contact Centers  Intersegment Eliminations  Other  Total For the Nine Months Ended September 30, 2024:                        Net sales $260,911  $88,854  $73,422  $(2,919) $-  $420,268 Cost of goods sold  167,534   53,335   34,075   (1,294)  -   253,650 Gross margin  93,377   35,519   39,347   (1,625)  -   166,618 Selling and administrative expenses  70,486   30,931   32,436   (1,625)  17,678   149,906 Impairment charge  -   260   -   -   -   260 Depreciation and amortization  4,513   2,837   2,246   -   276   9,872 Segment EBITDA(1) $27,404  $7,685  $9,157  $-  $(17,402) $26,844                           (1) Segment EBITDA is our primary measure of segment profitability under U.S. GAAP ASC 280 “Segment Reporting”. Amounts included in income before income tax expense and excluded from Segment EBITDA include: interest expense, net and depreciation and amortization expense. Total EBITDA is a non-GAAP financial measure. Please see reconciliation of Total EBITDA included in the Non-GAAP Financial Measures table above.

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