ST. PETERSBURG, Fla., Oct. 20, 2025 (GLOBE NEWSWIRE) -- Superior Group of Companies, Inc. (NASDAQ: SGC) (the “Company”) today announced that it will release the results of its operations for the third quarter 2025 after the market close on Monday, November 3, 2025. Michael Benstock, Chairman and Chief Executive Officer, and Mike Koempel, President and Chief Financial Officer, will host a teleconference at 5:00 pm Eastern Time that day to discuss the Company’s results. The live webcast and archived replay ca ...

Summary of Superior Group of Companies Conference Call (October 08, 2025) Company Overview - **Company**: Superior Group of Companies (NasdaqGM: SGC) - **Industry**: Healthcare apparel, branded products, and contact center services - **Market Position**: One of the largest and oldest providers in healthcare apparel, with a diversified business model across three segments [2][5][10] Core Business Segments 1. **Healthcare Apparel** - Focuses on both consumer and institutional markets - Major brands include Wink and Fashion Seal Healthcare - Total Addressable Market (TAM) estimated at over $4 billion, with significant growth potential [6][8] - Over 2 million people wear their healthcare apparel daily [6] 2. **Branded Products** - Provides promotional products and logoed uniforms - Industry size approximately $26 billion with over 25,000 competitors in the U.S. - Achieved a position among the top 10 largest branded distributors in the U.S. within nine years [8][9] 3. **Contact Center Services** - Operates as The Office Gurus, focusing on nearshore contact centers in El Salvador, Belize, and the Dominican Republic - Market size exceeds $100 billion in the U.S. - Fastest growing segment with a five-year sales growth rate of 22% and an EBITDA margin of 12.6% [10][11] Financial Performance - **Revenue Growth**: - Total revenues in 2024 were $566 million, up from $196 million in 2014, reflecting an annualized growth rate of 11% [11][12] - Average annual growth rate of 8% across all segments [3] - Second quarter revenue increased by 14% [17] - **Dividends and Share Repurchases**: - Consistent dividend payments since 1977, with a current yield of about 6% [12][30] - Share repurchase authorization of up to $17.5 million, with $7 million spent this year [31] Market Dynamics and Challenges - **Macro Environment**: - Political uncertainty and tariffs have impacted purchasing behavior, particularly in the branded products segment [15][16] - The healthcare apparel market remains steady, with ongoing demand for uniforms [18] - Contact center services are experiencing high demand, with a full pipeline of new business opportunities [19] - **Customer Sentiment**: - There is still some uncertainty affecting purchasing decisions, but overall sentiment is improving [21][22] Strategic Initiatives - **Capital Allocation**: - Focus on maintaining a leverage ratio of 2–2.5x EBITDA to allow for flexibility in share buybacks and investments [28][29] - Prioritizing organic growth investments and strategic acquisitions to spur growth in branded products and contact center segments [29] - **AI Integration**: - Early adoption of AI technology in contact center operations to enhance customer interactions and improve efficiency [24][25] - AI is being used to coach agents and improve service quality, leading to better customer satisfaction [25][26] Future Outlook - **Growth Opportunities**: - Significant potential for growth in the branded products segment due to its fragmented nature [32] - Interest in expanding contact center services into new geographies and business lines [32][33] - Potential for margin improvement across all segments through cost reductions and enhanced selling capabilities [35] Conclusion - Superior Group of Companies presents a compelling investment opportunity with diversified business segments, strong financial performance, and a focus on growth through strategic initiatives and market expansion [36]

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Summary of Superior Group of Companies Conference Call Company Overview - **Company Name**: Superior Group of Companies (NasdaqGM: SGC) - **Date of Conference**: September 18, 2025 - **Key Speakers**: Mike Koempel (CFO), Michael Benstock (Chairman and CEO) - **Company History**: Founded over 100 years ago, with a focus on three diversified segments [2][3] Industry Segments 1. **Healthcare Apparel** - Largest provider of healthcare apparel in the U.S., serving over 12 million healthcare professionals [5][6] - Total Addressable Market (TAM) estimated at over $4 billion, with significant growth opportunities [9] - Key brands include Wink and Fashion Seal Healthcare, with a strong omnichannel distribution strategy [8][10] 2. **Branded Products** - This segment is the largest, providing promotional products and logoed uniforms to major U.S. companies [11] - The branded products industry is approximately $26 billion, with SGC ranking among the top 10 largest branded distributors [14] - Notable clients include Taco Bell, Dunkin', Tesla, Walmart, and CVS, focusing on high-quality merchandise rather than low-value items [12][13] 3. **Contact Centers (The Office Gurus)** - Operates nearshore contact centers in El Salvador, Belize, the Dominican Republic, and Florida [19][20] - Fastest growing segment with a cumulative adjusted growth of 22% through 2024 and an EBITDA margin of 12.6% [22] - Market share is minimal, focusing on small to medium-sized businesses, with a total market exceeding $100 billion in the U.S. [22] Financial Highlights - **Revenue**: Consolidated revenues were $566 million, with a CAGR of 8% since 2019 [4] - **2025 Guidance**: Projected sales range of $550 to $575 million, indicating continued growth across all segments [24] - **Balance Sheet**: Net leverage ratio improved to about 1.7 times EBITDA, with a target range of 2 to 2.5 times [37][38] - **Dividends**: Uninterrupted dividend payments since 1977, with a yield of 4% to 5% [41][42] Strategic Initiatives - **Cost-Savings Plan**: Announced a $13 million reduction in annualized budgeted expenses, with expected benefits to be fully realized by 2026 [45][46] - **AI Integration**: Implementing AI across contact center services to enhance efficiency and customer loyalty, with 35 customers already utilizing the AI stack [34][35] - **Share Repurchase Program**: Initiated in August 2024, with $15 million of stock repurchased, balancing investments and share buybacks [38] Market Dynamics - **Customer Sentiment**: Improvement noted in the second quarter of 2025, with a 14% increase in branded products sales compared to the first quarter [42] - **Tariff Impact**: Initial concerns over tariffs have subsided, leading to increased willingness among customers to proceed with purchasing decisions [42][43] - **Sales Team Expansion**: Plans to expand and upskill sales teams across all business segments in 2026 [47][48] Conclusion - Superior Group of Companies is positioned for growth across its diversified segments, with a strong focus on customer retention, strategic investments, and leveraging technology to enhance operational efficiency. The company maintains a solid financial foundation and is committed to returning value to shareholders through dividends and share repurchases.

Core Viewpoint - Superior Group of Companies, Inc. has appointed Michael W. Koempel as President while he continues as Chief Financial Officer, reflecting the company's commitment to operational excellence and strategic growth [1][3]. Group 1: Leadership Changes - Michael W. Koempel has been appointed as President of Superior Group of Companies, effective immediately, while retaining his role as Chief Financial Officer [1]. - The three segment presidents will now report directly to Koempel in his new capacity [1]. Group 2: Leadership Experience - Koempel brings over 33 years of experience in financial, operational, governance, and strategic leadership, with a history of scaling high-growth apparel and retail brands [2]. - Prior to joining Superior Group, Koempel held significant leadership roles at IT'SUGAR®, Victoria's Secret Lingerie, and Mast Global [2]. Group 3: Company Strategy and Vision - The Chairman and CEO, Michael Benstock, emphasized Koempel's instrumental role in navigating challenges and strengthening the company's financial foundation over the past three years [3]. - Koempel expressed commitment to unlocking the potential of each business segment and driving growth, operational excellence, and shareholder value [3]. - Superior Group of Companies aims to enhance shareholder value through organic growth and strategic acquisitions across its three business segments: Healthcare Apparel, Branded Products, and Contact Centers [4].

Group 1 - Superior Group of Companies, Inc. will participate in a fireside chat at the Sidoti Virtual Investor Conference on September 18, 2025, at 10:45 AM Eastern Time [1] - The live webcast and replay of the conference will be available on the company's Investor Relations website [1] - Management will also host virtual meetings throughout the day of the conference [1] Group 2 - Superior Group of Companies was established in 1920 and consists of three business segments: Healthcare Apparel, Branded Products, and Contact Centers [2] - Each segment serves large, fragmented, and growing addressable markets, enabling businesses to create extraordinary brand engagement experiences [2] - The company emphasizes service, quality, advanced technology, and omnichannel commerce as competitive advantages [2] - Superior Group of Companies is committed to enhancing shareholder value through organic growth and strategic acquisitions [2]

Group 1 - Superior Group (SGC) shares have increased by 18.5% over the past four weeks, closing at $13.01, with a mean price target of $18 indicating a potential upside of 38.4% [1] - The average price targets range from a low of $14.00 to a high of $24.00, with a standard deviation of $4, suggesting a variability in analyst estimates [2] - Analysts show strong agreement on SGC's ability to report better earnings, with a positive trend in earnings estimate revisions correlating with potential stock price increases [4][11] Group 2 - Over the last 30 days, the Zacks Consensus Estimate for SGC's current year earnings has increased by 16.4%, with two estimates moving higher and no negative revisions [12] - SGC holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] - While consensus price targets may not be entirely reliable, the direction they imply appears to be a good guide for potential price movement [14]

Group 1 - Superior Group (SGC) has recently reached a key level of support and has overtaken the 200-day moving average, indicating a long-term bullish trend [1] - Over the past four weeks, SGC has gained 18.5% and is currently ranked a Zacks Rank 2 (Buy), suggesting potential for further stock price increases [2] - Positive earnings estimate revisions support the bullish outlook, with no estimates decreasing in the past two months and two estimates increasing, along with a rise in the consensus estimate [2][3] Group 2 - The combination of positive earnings estimate revisions and the achievement of a key technical level positions SGC as a stock to watch for potential gains in the near future [3]

Core Viewpoint - The article discusses the reliability of Wall Street analysts' recommendations, particularly focusing on Superior Group (SGC), and emphasizes the importance of using these recommendations in conjunction with other analytical tools for investment decisions [1][5]. Brokerage Recommendations - Superior Group has an average brokerage recommendation (ABR) of 1.40, indicating a consensus between Strong Buy and Buy, with 80% of the recommendations being Strong Buy from five brokerage firms [2][14]. - Despite the positive ABR, relying solely on this information for investment decisions may not be advisable, as studies show brokerage recommendations often lack success in guiding investors towards stocks with significant price appreciation [5][10]. Analyst Bias and Limitations - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings due to vested interests, with five "Strong Buy" recommendations for every "Strong Sell" [6][10]. - This misalignment of interests can lead to misleading guidance for retail investors, suggesting that brokerage recommendations should be used to validate independent analyses rather than as standalone indicators [7][10]. Zacks Rank as a Tool - The Zacks Rank, which classifies stocks from 1 (Strong Buy) to 5 (Strong Sell), is presented as a more reliable indicator of near-term price performance, based on earnings estimate revisions [8][11]. - The Zacks Rank is updated more frequently than the ABR, making it a timely tool for predicting future stock prices [12]. Earnings Estimate Revisions - For Superior Group, the Zacks Consensus Estimate for the current year has increased by 16.4% over the past month to $0.47, indicating growing optimism among analysts regarding the company's earnings prospects [13]. - This increase in consensus estimates, along with other factors, has resulted in a Zacks Rank 2 (Buy) for Superior Group, suggesting a positive outlook for the stock [14].

Core Viewpoint - Momentum investing contrasts with the traditional "buy low and sell high" strategy, focusing instead on "buying high and selling higher" to capitalize on fast-moving stocks [1] Group 1: Momentum Investing Strategy - Investors following momentum investing often avoid undervalued stocks, believing that quicker profits can be made from trending stocks [1] - Identifying the right entry point for momentum stocks can be challenging, as they may lose momentum if future growth does not justify their high valuations [1] Group 2: Stock Analysis - Superior Group (SGC) - Superior Group (SGC) has shown a four-week price change of 6.9%, indicating growing investor interest [3] - Over the past 12 weeks, SGC's stock has gained 21.7%, demonstrating its ability to deliver positive returns over a longer timeframe [4] - SGC has a beta of 1.45, suggesting it moves 45% more than the market in either direction, indicating fast-paced momentum [4] - The stock has a Momentum Score of B, suggesting it is a favorable time to invest [5] - SGC has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investors [6] - The stock is trading at a Price-to-Sales ratio of 0.33, indicating it is relatively cheap at 33 cents for each dollar of sales [6] Group 3: Investment Opportunities - SGC is highlighted as a strong candidate for investment, with potential for further price appreciation [7] - Other stocks that meet the 'Fast-Paced Momentum at a Bargain' criteria are also available for consideration [7] - Zacks offers over 45 Premium Screens to help investors find winning stock picks based on their investing style [8]