Superior Group of Companies, Inc.

What they do

Superior operates three reportable segments: Branded Products, which sells customized merchandising, promotional products and branded uniform programs under BAMKO and HPI; Healthcare Apparel, which sells scrubs, lab coats and patient apparel under Wink, Fashion Seal Healthcare, CID Resources and a Carhartt Medical license; and Contact Centers, operating as The Office Gurus. Branded Products and Healthcare Apparel manufacture through third parties or own facilities, while Contact Centers provides nearshore and onshore call-center support from El Salvador, Belize, the Dominican Republic and the United States, plus Jamaica until its closure on June 15, 2025.

Revenue drivers

• Branded Products — Customized merchandising, promotional products and branded uniform programs sold to retail, food service, entertainment, technology and transportation customers; about 64% of 2025 net sales, up from 62% in 2024.
• Healthcare Apparel — Scrubs, lab coats, protective and patient apparel sold mainly in the U.S. to healthcare laundries, dealers, distributors and retailers; about 20% of 2025 net sales, down from 21% in 2024.
• Contact Centers — Outsourced nearshore and onshore business process outsourcing and call-center support for North American customers, also provided internally to the other two segments; about 16% of 2025 net sales, down from 17% in 2024.
• Sourcing and tariffs — Raw materials including cotton, polyester, spandex and blends are largely sourced in China, so segment economics are exposed to U.S. trade policy and duty costs.

Recent performance

Second quarter 2026 net sales were $147.8 million, up from $144.0 million in the prior-year quarter. Net income was $1.2 million, or $0.08 per diluted share, versus $1.6 million, or $0.10, a year earlier, after a $2.6 million non-cash tradename impairment in Healthcare Apparel ($2.0 million after tax, $0.13 per share). Excluding that charge, adjusted net income was $3.2 million, or $0.21 per diluted share, versus $0.10 a year earlier, and adjusted EBITDA rose to $7.7 million from $6.1 million. Full-year 2025 results were revenue of $566.2 million, net income of $7.0 million and diluted EPS of $0.46, with operating cash flow of $19.7 million.

Strategy

Management describes the company as diversified across three businesses and cites high customer retention and a flexible supply chain alongside a healthy balance sheet. It continues to forecast full-year 2026 net sales of $572.0 million to $585.0 million and adjusted diluted EPS of $0.54 to $0.66. Capital return remains part of the plan, with the board declaring a $0.14 per share quarterly dividend on August 4, 2026 and the CEO referencing opportunistic share repurchases. The company says it expects demand for Wink, Fashion Seal Healthcare, CID Resources and Carhartt Medical to support growth and market-share gains in Healthcare Apparel.

Risks

• Tariff and trade exposure — Higher or new U.S. tariffs in 2025 affected the company's material and production sources, and the IEEPA tariffs collected before the February 2026 Supreme Court ruling leave refund timing uncertain.
• AGOA/HOPE/HELP expiration — The Africa and Haiti trade preference programs expired September 30, 2025 and were retroactively extended only until December 2026; failure to extend further would raise costs or force a shift in sourcing and manufacturing.
• China supply concentration — The majority of principal raw materials are sourced in China, directly or through suppliers, so an interruption or further duty increases could significantly disrupt the business.
• Healthcare Apparel softness — The segment recorded a $2.6 million non-cash tradename impairment in the second quarter of 2026 and its share of net sales slipped to about 20% in 2025.

Outlook

The company reiterated full-year 2026 net sales guidance of $572.0 million to $585.0 million, up from 2025 net sales of $566.2 million, and adjusted earnings per diluted share of $0.54 to $0.66, up from $0.46 in 2025. Management said guidance reflects stronger results in the back half of the year due to seasonal factors and described current market conditions as soft while pointing to growth opportunities across all three businesses.