ST. PETERSBURG, Fla., May 04, 2026 (GLOBE NEWSWIRE) -- Superior Group of Companies, Inc. (NASDAQ: SGC) (the “Company”), today announced its first quarter 2026 results.
“Against a still uncertain economic backdrop, our first quarter results show that we are continuing to move Superior Group of Companies in the right direction, even as there is still work to reach the level of performance we are targeting,” said Michael Benstock, Chief Executive Officer. “We are seeing the benefits of the portfolio and cost actions we’ve taken over the last several years, with healthier business mix, improved underlying profitability and stronger earnings power than a year ago, despite uneven demand across our end markets. While macro and geopolitical conditions remain difficult to predict and are weighing on customer spending in certain categories, our diversified segments, strong customer relationships and flexible supply chain position us to continue taking share where we choose to compete. Consistent with the historical cadence of our business, we expect performance to be more heavily weighted to the back half of 2026, and our balance sheet and cash generation give us the ability to keep investing in our most differentiated solutions while returning capital to shareholders through our dividend and opportunistic share repurchases in support of long-term value creation.”
First Quarter Results
For the first quarter ended March 31, 2026, net sales were $140.9 million, compared to first quarter 2025 net sales of $137.1 million. Pretax earnings of $1.1 million compared to ($0.9) million in the first quarter of 2025. Net earnings of $0.8 million or $0.06 per diluted share compared to a net loss of ($0.8) million or ($0.05) per diluted share for the first quarter of 2025.
First Quarter 2026 Dividend
The Board of Directors declared a quarterly dividend of $0.14 per share, payable May 29, 2026 to shareholders of record as of May 15, 2026.
2026 Full-Year Outlook
The Company continues to forecast full-year 2026 net sales in the range of $572 million to $585 million, up from 2025 net sales of $566.2 million, and full-year earnings per diluted share in the range of $0.54 to $0.66, up from $0.46 in 2025.
Webcast and Conference Call
The Company will host a webcast and conference call at 8:00am 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 May 11, 2026. To access the replay, dial 1-855-669-9658 in the United States or Canada, or 1-412-317-0088 from international locations. Please reference conference number 4789430 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; uncertainties related to tariffs, duties, trade wars and related matters, supply disruptions, inflationary environments (including with respect to shipping costs and 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 Company's ability to maintain effective internal control over financial reporting; and other factors described in the Company’s filings with the Securities and Exchange Commission ("SEC"), including those risks described in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 entitled "Risk Factors" and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2026. 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:
[email protected]
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except shares and per share data) Three Months Ended March 31, 2026 2025 Net sales $140,878 $137,097 Costs and expenses: Cost of goods sold 88,544 86,656 Selling and administrative expenses 50,368 50,102 Interest expense, net 912 1,245 139,824 138,003 Income (loss) before income tax expense (benefit) 1,054 (906)Income tax expense (benefit) 220 (148)Net income (loss) $834 $(758) Net income (loss) per share: Basic $0.06 $(0.05)Diluted $0.06 $(0.05) Weighted average shares outstanding during the period: Basic 14,629,019 15,599,655 Diluted 14,917,845 15,599,655 Cash dividends per common share $0.14 $0.14
CONSOLIDATED BALANCE SHEETS
(In thousands, except shares and par value data) March 31, December 31, 2026 2025 (Unaudited) ASSETS Current assets: Cash and cash equivalents $23,172 $23,691 Accounts receivable, net 84,917 104,336 Inventories 97,430 97,474 Contract assets 55,313 48,903 Prepaid expenses and other current assets 13,903 13,259 Total current assets 274,735 287,663 Property, plant and equipment, net 35,966 37,352 Operating lease right-of-use assets 12,157 12,620 Deferred tax asset 14,987 15,003 Intangible assets, net 46,359 47,254 Goodwill 2,583 2,583 Other assets 19,734 19,369 Total assets $406,521 $421,844 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable $45,159 $48,343 Other current liabilities 48,324 53,041 Current portion of long-term debt 7,031 6,563 Total current liabilities 100,514 107,947 Long-term debt 80,279 87,093 Long-term pension liability 15,123 15,010 Long-term acquisition-related contingent liabilities 919 826 Long-term operating lease liabilities 7,586 7,939 Other long-term liabilities 9,349 10,211 Total liabilities 213,770 229,026 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 15,632,981 and 15,730,615 shares, respectively 16 16 Additional paid-in capital 84,857 84,628 Retained earnings 111,233 112,871 Accumulated other comprehensive loss, net of tax: (3,355) (4,697)Total shareholders’ equity 192,751 192,818 Total liabilities and shareholders’ equity $406,521 $421,844
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands) Three Months Ended March 31, 2026 2025 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $834 $(758)Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 2,858 3,204 Inventory write-downs 1,095 441 Credit loss expense 314 131 Share-based compensation expense 887 1,283 Change in fair value of acquisition-related contingent liabilities 93 287 Non-cash operating lease expense 1,019 900 Other, net 46 86 Changes in assets and liabilities: Accounts receivable 19,415 2,607 Contract assets (6,397) 1,069 Inventories (994) (2,191)Prepaid expenses and other current assets 159 749 Other assets (391) 113 Accounts payable and other current liabilities (9,044) (9,262)Other long-term liabilities (537) (647)Net cash provided by (used in) operating activities 9,357 (1,988) CASH FLOWS FROM INVESTING ACTIVITIES Additions to property, plant and equipment (568) (1,131)Net cash used in investing activities (568) (1,131) CASH FLOWS FROM FINANCING ACTIVITIES Borrowings under revolving lines of credit 10,000 19,000 Payments under revolving lines of credit (15,000) (8,000)Payments of term loan (1,406) (1,406)Payments of cash dividends (2,164) (2,280)Shares withheld for taxes net of proceeds received on exercise of stock options (288) 87 Common shares repurchased and retired (678) (3,777)Net cash (used in) provided by financing activities (9,536) 3,624 Effect of currency exchange rates on cash 228 486 Net decreases in cash and cash equivalents (519) 991 Cash and cash equivalents balance, beginning of period 23,691 18,766 Cash and cash equivalents balance, end of period $23,172 $19,757
NON-GAAP FINANCIAL MEASURES
(Unaudited)
(In thousands) Three Months Ended March 31, 2026 2025 Net income (loss) $834 $(758)Interest expense, net 912 1,245 Income tax expense (benefit) 220 (148)Depreciation and amortization 2,858 3,204 EBITDA(1) $4,824 $3,543 EBITDA margin(1) 3.4% 2.6%
(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.
SUPPLEMENTAL INFORMATION - REPORTABLE SEGMENTS
(Unaudited)
(In thousands) Branded Products Healthcare Apparel Contact Centers Intersegment Eliminations Other Total For the Three Months Ended March 31, 2026: Net sales $90,869 $28,601 $22,253 $(845) $- $140,878 Cost of goods sold 59,882 18,420 10,639 (397) - 88,544 Gross margin 30,987 10,181 11,614 (448) - 52,334 Selling and administrative expenses 24,746 10,778 9,563 (448) 5,729 50,368 Depreciation and amortization 1,374 823 588 - 73 2,858 Segment EBITDA(1) $7,615 $226 $2,639 $- $(5,656) $4,824 Branded Products Healthcare Apparel Contact Centers Intersegment Eliminations Other Total For the Three Months Ended March 31, 2025: Net sales $86,474 $27,263 $24,225 $(865) $- $137,097 Cost of goods sold 58,787 17,130 11,244 (505) - 86,656 Gross margin 27,687 10,133 12,981 (360) - 50,441 Selling and administrative expenses 23,420 9,526 10,921 (360) 6,595 50,102 Depreciation and amortization 1,480 912 722 - 90 3,204 Segment EBITDA(1) $5,747 $1,519 $2,782 $- $(6,505) $3,543
(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.