Superior Group of Companies Reports Third Quarter 2026 Results

News originally published by

November 9, 2026, 12:05 GMT

• Total net sales of $146.0 million, up 5% over prior year third quarter

• Net income of $2.6 million versus $2.7 million in prior year third quarter

• Adjusted EBITDA of $6.7 million versus $7.5 million in prior year third quarter

• Tightens full-year Outlook

ST. PETERSBURG, Fla., Nov. 09, 2026 (GLOBE NEWSWIRE) -- Superior Group of Companies, Inc. (NASDAQ: SGC) (the “Company”), today announced its third quarter 2026 results.

“We drove solid overall top line growth from continued momentum in our Branded Products and Contact Centers segments,” said Michael Benstock, Chief Executive Officer. “New leadership in Healthcare Apparel continues to execute toward a more focused product strategy to improve margins and reduce working capital requirements in the quarters ahead. On a consolidated basis, we were able to hold EPS essentially flat versus the prior year quarter despite incremental charges associated with our strategic shift in Healthcare Apparel. We look forward to finishing the year with growth in both sales and earnings compared to 2025, and with a solid balance sheet that provides the foundation for continued strategic investment such as our recent acquisition of Select VoiceCom and the return of capital to shareholders.”

Third Quarter Results

For the third quarter ended September 30, 2026, net sales were $146.0 million, up 5% from third quarter 2025 net sales of $138.5 million. Net income was $2.6 million or $0.17 per diluted share compared to net income of $2.7 million or $0.18 per diluted share for the third quarter of 2025.

2026 Full-Year Outlook

The Company tightened its full-year 2026 net sales forecast to a range of $578.0 million to $585.0 million, from its previous range of $572.0 million to $585.0 million, up from 2025 net sales of $566.2 million. It also tightened its full-year adjusted earnings per diluted share forecast to a range of $0.60 to $0.66, from its previous range of $0.54 to $0.66, up from $0.46 in 2025 and representing 43% growth at the high end.

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 November 23, 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 8522694 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 include 2026 guidance of net sales and earnings per diluted share and may also 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 impact of global conflicts, such as the Russia-Ukraine War and the joint U.S.-Israeli War with Iran in 2026, oil and natural gas prices, 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), 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 September 30, 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:
Investors@Superiorgroupofcompanies.com


SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except shares and per share data)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Net sales	$	145,994	$	138,467	$	434,708	$	419,609

Costs and expenses:
Cost of goods sold		90,168		85,389		270,429		260,764
Selling and administrative expenses		51,866		48,513		153,561		150,855
Interest expense, net		809		1,378		2,702		3,873
Trade name impairment charge		-		-		2,600		-
		142,843		135,280		429,292		415,492
Income before income tax expense		3,151		3,187		5,416		4,117
Income tax expense		580		443		790		580
Net income	$	2,571	$	2,744	$	4,626	$	3,537

Net income per share:
Basic	$	0.17	$	0.19	$	0.32	$	0.24
Diluted	$	0.17	$	0.18	$	0.31	$	0.23

Weighted average shares outstanding during the period:
Basic		14,787,455		14,738,863		14,637,206		15,050,834
Diluted		15,247,892		15,119,050		15,024,519		15,422,144

Cash dividends per common share	$	0.14	$	0.14	$	0.42	$	0.42


SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except shares and par value data)

	September 30,			December 31,
	2026			2025
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	27,924		$	23,691
Accounts receivable, net		96,273			104,336
Inventories		87,936			97,474
Contract assets		52,860			48,903
Prepaid expenses and other current assets		16,741			13,259
Total current assets		281,734			287,663
Property, plant and equipment, net		34,250			37,352
Operating lease right-of-use assets		11,258			12,620
Deferred tax asset		14,954			15,003
Intangible assets, net		42,051			47,254
Goodwill		2,583			2,583
Other assets		21,009			19,369
Total assets	$	407,839		$	421,844

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	51,325		$	48,343
Other current liabilities		52,222			53,041
Current portion of long-term debt		3,750			6,563
Current portion of acquisition-related contingent liabilities		682			-
Total current liabilities		107,979			107,947
Long-term debt		74,287			87,093
Long-term pension liability		15,233			15,010
Long-term acquisition-related contingent liabilities		455			826
Long-term operating lease liabilities		6,630			7,939
Other long-term liabilities		10,217			10,211
Total liabilities		214,801			229,026
Shareholders’ equity:
Preferred stock, $0.001 par value - authorized 300,000 shares (none issued)		-			-
Common stock, $0.001 par value - authorized 50,000,000 shares, issued and outstanding 15,894,450 and 15,730,615 shares, respectively		16			16
Additional paid-in capital		86,088			84,628
Retained earnings		110,169			112,871
Accumulated other comprehensive loss, net of tax		(3,235	)		(4,697	)
Total shareholders’ equity		193,038			192,818
Total liabilities and shareholders’ equity	$	407,839		$	421,844


SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands)

	Nine Months Ended September 30,
	2026			2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	4,626		$	3,537
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		8,489			9,157
Inventory write-downs		9,498			1,793
Credit loss expense		3,165			2,347
Share-based compensation expense		2,523			3,916
Trade name impairment charge		2,600			-
Change in fair value of acquisition-related contingent liabilities		311			659
Non-cash operating lease expense		3,116			2,843
Other, net		183			244
Changes in assets and liabilities:
Accounts receivable		5,338			(3,710	)
Contract assets		(3,920	)		3,326
Inventories		91			(10,535	)
Prepaid expenses and other current assets		(2,963	)		(423	)
Other assets		(1,778	)		(1,692	)
Accounts payable and other current liabilities		(1,432	)		(10,636	)
Payment of acquisition-related contingent liabilities		-			(791	)
Other long-term liabilities		832			1,235
Net cash provided by operating activities		30,679			1,270

CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant and equipment		(2,675	)		(3,407	)
Net cash used in investing activities		(2,675	)		(3,407	)

CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings under revolving lines of credit		33,545			76,000
Payments under revolving lines of credit		(63,545	)		(58,000	)
Borrowings under term loan		24,375			-
Payments of term loan		(9,375	)		(4,218	)
Debt issuance costs		(821	)		-
Payments of cash dividends		(6,575	)		(6,713	)
Payment of acquisition-related contingent liabilities		-			(226	)
Shares withheld for taxes net of proceeds received on exercise of stock options		(351	)		90
Common shares repurchased and retired		(1,465	)		(7,928	)
Net cash used in financing activities		(24,212	)		(995	)

Effect of currency exchange rates on cash		441			1,017
Net increases (decreases) in cash and cash equivalents		4,233			(2,115	)
Cash and cash equivalents balance, beginning of period		23,691			18,766
Cash and cash equivalents balance, end of period	$	27,924		$	16,651


SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES ADJUSTED NET INCOME & NON-GAAP RECONCILIATION (Unaudited) (In thousands)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026			2025
Net income	$	2,571	$	2,744	$	4,626		$	3,537
Add backs:
Trade name impairment charge		-		-		2,600			-
Tax impact of adjustments⁽¹⁾		-		-		(640	)		-
Adjusted net income⁽²⁾	$	2,571	$	2,744	$	6,586		$	3,537

Diluted net income per share	$	0.17	$	0.18	$	0.31		$	0.23
Add back items, after-tax, per diluted share		-		-		0.13			-
Diluted adjusted net income per share⁽²⁾	$	0.17	$	0.18	$	0.44		$	0.23

Weighted average shares outstanding during the period:
Diluted, as reported and adjusted		15,247,892		15,119,050		15,024,519			15,422,144

⁽¹⁾The tax impact of adjustments includes the tax effect of each separate adjustment based on the statutory tax rate for the jurisdiction(s) in which the adjustment was taxable or deductible, and the tax effect of items that relate to tax specific financial transactions.
⁽²⁾Adjusted net income and diluted adjusted net income per share, which are non-GAAP measures, are defined as net income (loss) and net income (loss) per share, excluding the impacts of impairment and pension plan termination charges. Management believes adjusted net income (loss) and diluted adjusted net income (loss) per share provides useful information to investors because it allows management, investors and others to evaluate and compare our operating results from period to period by removing the impact of impairment and pension plan termination charges that are not reflective of our core business. Adjusted net income and Diluted adjusted net income per share should not be considered in isolation or as an alternative to net income or net income per share or any other measure determined in accordance with GAAP. The items excluded to calculate Adjusted net income and Diluted adjusted net income per share are significant components in understanding and assessing the Company’s net income. The Company’s Adjusted net income and Diluted adjusted net income per share may not be comparable to a similarly titled measure of another company because other companies may not calculate Adjusted net income and Diluted adjusted net income per share in the same manner.


SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES SUPPLEMENTAL INFORMATION - REPORTABLE SEGMENTS & NON-GAAP RECONCILIATIONS (Unaudited) (In thousands)

	Branded Products		Healthcare Apparel			Contact Centers		Intersegment Eliminations			Total
For the Three Months Ended September 30, 2026:
Net sales	$	92,111	$	30,553		$	24,224	$	(894	)	$	145,994
Cost of goods sold		58,602		20,575			11,398		(407	)		90,168
Gross margin		33,509		9,978			12,826		(487	)		55,826
Less: Selling and administrative expenses		24,961		11,303			10,496		(487	)		46,273
Less: Trade name impairment charge		-		-			-		-			-
Add backs:
Trade name impairment charge		-		-			-		-			-
Segment depreciation and amortization		1,295		824			567		-			2,686
Segment Adjusted EBITDA⁽⁴⁾	$	9,843	$	(501	)	$	2,897	$	-		$	12,239
Less corporate selling and administrative expenses												5,593
Add back corporate depreciation and amortization												61
Adjusted EBITDA⁽³⁾											$	6,707

	Branded Products		Healthcare Apparel			Contact Centers		Intersegment Eliminations			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
Less: Selling and administrative expenses		23,501		9,779			10,283		(672	)		42,891
Add backs:
Segment depreciation and amortization		1,396		832			661		-			2,889
Segment Adjusted EBITDA⁽⁴⁾	$	7,524	$	3,179		$	2,373	$	-		$	13,076
Less corporate selling and administrative expenses												5,622
Add back corporate depreciation and amortization												86
Adjusted EBITDA⁽³⁾											$	7,540

	Branded Products		Healthcare Apparel			Contact Centers		Intersegment Eliminations			Total
For the Nine Months Ended September 30, 2026:
Net sales	$	281,370	$	86,385		$	69,571	$	(2,618	)	$	434,708
Cost of goods sold		181,002		57,259			33,381		(1,213	)		270,429
Gross margin		100,368		29,126			36,190		(1,405	)		164,279
Less: Selling and administrative expenses		75,708		32,027			30,413		(1,405	)		136,743
Less: Trade name impairment charge		-		2,600			-		-			2,600
Add backs:
Trade name impairment charge		-		2,600			-		-			2,600
Segment depreciation and amortization		4,013		2,466			1,804		-			8,283
Segment Adjusted EBITDA⁽⁴⁾	$	28,673	$	(435	)	$	7,581	$	-		$	35,819
Less corporate selling and administrative expenses												16,818
Add back corporate depreciation and amortization												206
Adjusted EBITDA⁽³⁾											$	19,207

	Branded Products		Healthcare Apparel			Contact Centers		Intersegment Eliminations			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
Less: Selling and administrative expenses		72,353		29,383			32,816		(1,351	)		133,201
Add backs:
Segment depreciation and amortization		4,271		2,598			2,022		-			8,891
Segment Adjusted EBITDA⁽⁴⁾	$	22,250	$	5,490		$	6,795	$	-		$	34,535
Less corporate selling and administrative expenses												17,654
Add back corporate depreciation and amortization												266
Adjusted EBITDA⁽³⁾											$	17,147

The following table reconciles income before income tax expense to Total Segment Adjusted EBITDA (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Income before income tax expense	$	3,151	$	3,187	$	5,416	$	4,117
Interest expense, net		809		1,378		2,702		3,873
Corporate selling and administrative expenses		5,593		5,622		16,818		17,654
Segment depreciation and amortization		2,686		2,889		8,283		8,891
Trade name impairment charge		-		-		2,600		-
Total Segment Adjusted EBITDA	$	12,239	$	13,076	$	35,819	$	34,535

The following table reconciles net income to Adjusted EBITDA (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2026			2025			2026			2025
Net income	$	2,571		$	2,744		$	4,626		$	3,537
Interest expense, net		809			1,378			2,702			3,873
Income tax expense		580			443			790			580
Segment depreciation and amortization		2,686			2,889			8,283			8,891
Corporate depreciation and amortization		61			86			206			266
Trade name impairment charge		-			-			2,600			-
Adjusted EBITDA⁽³⁾	$	6,707		$	7,540		$	19,207		$	17,147
Adjusted EBITDA margin⁽³⁾		4.6	%		5.4	%		4.4	%		4.1	%

⁽³⁾ Adjusted EBITDA, which is a non-GAAP financial measure, is defined as net income excluding interest expense, net, income tax expense, impairments and depreciation and amortization expense. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by net sales. The Company believes Adjusted 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, (iii) asset base (depreciation and amortization) and (iv) impairments. The Company uses Adjusted EBITDA internally to monitor operating results and to evaluate the performance of its business. In addition, the compensation committee has used Adjusted EBITDA in evaluating certain components of executive compensation, including performance-based annual incentive programs. Adjusted EBITDA is not a measure of financial performance under GAAP. Adjusted 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 Adjusted EBITDA are significant components in understanding and assessing the Company’s results of operations. The Company’s Adjusted EBITDA may not be comparable to a similarly titled measure of another company because other companies may not calculate Adjusted EBITDA in the same manner.
⁽⁴⁾ Segment Adjusted EBITDA, as reported above for each segment, 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 Adjusted EBITDA include: interest expense, net, impairments and depreciation and amortization expense. Total Segment Adjusted EBITDA is a non-GAAP financial measure and is reconciled to its most closely comparable GAAP metric of income before income tax expense in the table above.

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