Superior of panies(SGC)

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Superior Group (SGC) Reports Q1 Loss, Lags Revenue Estimates
ZACKS· 2025-05-08 22:40
Financial Performance - Superior Group reported a quarterly loss of $0.05 per share, missing the Zacks Consensus Estimate of $0.11, and down from earnings of $0.24 per share a year ago, representing an earnings surprise of -145.45% [1] - The company posted revenues of $137.1 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.14%, and down from $138.84 million year-over-year [2] - Over the last four quarters, Superior Group has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Performance - Superior Group shares have declined approximately 38.2% since the beginning of the year, compared to a decline of -4.3% for the S&P 500 [3] - The current Zacks Rank for Superior Group is 5 (Strong Sell), indicating expectations for the stock to underperform the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.12 on revenues of $137.84 million, and for the current fiscal year, it is $0.76 on revenues of $584.83 million [7] - The estimate revisions trend for Superior Group is currently unfavorable, which may change following the recent earnings report [6] Industry Context - The Textile - Apparel industry, to which Superior Group belongs, is currently ranked in the bottom 22% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Lululemon, another company in the same industry, is expected to report quarterly earnings of $2.60 per share, reflecting a year-over-year change of +2.4% [9]
Superior of panies(SGC) - 2025 Q1 - Earnings Call Transcript
2025-05-08 22:02
Financial Data and Key Metrics Changes - The company reported a first quarter net loss per share of $0.05 compared to earnings per diluted share of $0.24 in the prior year period, primarily due to lower gross margins from sales mix changes [8][16] - Consolidated first quarter revenues were down 1% year over year, with a strong balance sheet and net leverage position allowing for a strategic long-term approach to capital allocation [12][17] - Gross margin rate was 36.8% for the first quarter, down from 39.8% in the prior year [14] Business Segment Data and Key Metrics Changes - Branded Products revenue was off less than 1%, with promotional products growing while branded uniform sales declined due to stronger rollouts in the previous year [13] - Healthcare Apparel revenue decreased by 7% year over year, reflecting a decline in Institutional Healthcare Apparel [13] - Contact Center business segment grew revenue by 3%, benefiting from solid retention and growth of existing customers [13] Market Data and Key Metrics Changes - The company noted customer buying hesitancy due to inflation, interest rates, and tariffs, which have slowed decision-making and sourcing challenges [5][6] - The company has a diversified sourcing strategy that mitigates risks associated with high tariffs on products from China [6][9] Company Strategy and Development Direction - The company is focused on strong cost management and has eliminated costs to support profitability as demand normalizes [7][8] - The company plans to invest in growing digital channels and expanding market share in the healthcare apparel segment [11] - The company is actively repurchasing shares, considering it a compelling value, while maintaining significant liquidity for growth [9][17] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for Q2, citing a strong order backlog and customer retention over 90% [10] - The company anticipates revenue for the full year to be in the range of $550 million to $575 million, reflecting a conservative approach due to economic uncertainty [18] - Management emphasized a proven track record of navigating challenging economic times and maintaining a strong position relative to competitors [18] Other Important Information - The company has executed approximately $13 million in annualized savings, primarily within SG&A expenses, to enhance operational efficiency [44][53] - The company ended the first quarter with $20 million in cash and cash equivalents, up from $19 million at the start of the year [16] Q&A Session Summary Question: Discussion on the pipeline in branded products and contact centers - Management highlighted strong pipelines in both segments, with aggressive recruitment and positioning as experts in navigating tariff challenges [21][23] Question: Reduced revenue guidance and conservatism in the second half - Management confirmed a cautious approach while still expecting a ramp-up in the second half, managing costs conservatively [30] Question: Cost perspective on tariffs and price increases - Management indicated the ability to pass on tariff-related costs to customers, with flexibility in pricing strategies [31][32] Question: Impact of tariffs on customer behavior and supply chain disruptions - Management noted that even if tariffs were lifted, it would take time to return to normalcy due to supply chain disruptions [40][43] Question: Insights on SG&A savings and operational efficiencies - Management confirmed that the $13 million in savings would not impact growth and would begin to benefit in the second quarter [44][53] Question: Acquisition opportunities in the current environment - Management is currently conserving cash and not pursuing acquisitions until there is more clarity on tariffs, but sees potential opportunities in the future [55][56]
Superior of panies(SGC) - 2025 Q1 - Earnings Call Transcript
2025-05-08 22:00
Financial Data and Key Metrics Changes - The company reported a consolidated first quarter revenue decline of 1% year over year, holding revenue nearly flat despite macroeconomic headwinds [7][12] - The net loss per share for the first quarter was $0.05, compared to earnings per diluted share of $0.24 in the prior year period, primarily due to lower gross margins from sales mix changes [7][16] - Consolidated EBITDA decreased to $3.5 million from $9.6 million a year earlier, reflecting the impact of lower revenues and margins [13] Business Segment Data and Key Metrics Changes - In the Branded Products segment, revenue was down less than 1%, with promotional products growing while branded uniform sales declined due to stronger rollouts in the previous year [12][8] - Healthcare Apparel revenue fell by 7% year over year, primarily due to a decline in Institutional Healthcare Apparel [12] - The Contact Center segment grew revenue by 3%, benefiting from solid retention and growth of existing customers [12] Market Data and Key Metrics Changes - The company noted that customer buying hesitancy persisted due to inflation, interest rates, and tariffs, particularly affecting sourcing challenges [5][6] - The company maintained a strong balance sheet with $20 million in cash and cash equivalents, up from $19 million at the start of the year [16] Company Strategy and Development Direction - The company is focused on strong cost management and has eliminated approximately $13 million in annualized budget expenses to enhance profitability as demand normalizes [18] - The company is leveraging its diversified business segments and multiple sources of supply to navigate economic uncertainties [6][5] - The company aims to capitalize on market dislocations by actively repurchasing common shares, considering it a compelling value [8] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for Q2, citing a strong order backlog and customer retention over 90% [9] - The company anticipates revenue for the full year to be in the range of $550 million to $575 million, reflecting a conservative outlook due to economic uncertainties [17][18] - Management emphasized a proven track record of navigating challenging economic times and maintaining significant liquidity to support growth [18] Other Important Information - The company has a net leverage ratio of 2.2 times trailing twelve months covenant EBITDA, which is within covenant requirements [17] - The company is exploring acquisition opportunities but is currently focused on conserving cash until there is more clarity regarding tariffs [53] Q&A Session Summary Question: Discussion on the pipeline in branded products and contact centers - Management highlighted strong pipelines in both segments, with aggressive recruitment and positioning as experts in navigating tariff challenges [21][23] Question: Reduced revenue guidance and conservatism in the second half - Management confirmed a cautious approach due to current uncertainties but expects a ramp-up in the second half [30] Question: Cost perspective on tariffs and price increases - Management stated they can pass on tariff increases to most customers and are actively managing pricing strategies [31][33] Question: Impact of tariffs on customer behavior and supply chain disruptions - Management noted that even if tariffs were lifted, it would take 6 to 9 months for supply chains to normalize due to disruptions [39][41] Question: Annualized cost savings and operational efficiencies - Management confirmed $13 million in annualized savings primarily from SG&A expense reductions, which will begin to impact the second quarter [43][51] Question: Acquisition opportunities and focus areas - Management is currently conserving cash and will only consider acquisitions that are immediately accretive and at the right price [53][54] Question: Price elasticity of branded products and profitability - Management indicated flexibility in pricing strategies to recoup tariff costs while maintaining market share [58][62]
Superior of panies(SGC) - 2025 Q1 - Earnings Call Presentation
2025-05-08 21:22
INVESTOR PRESENTATION May 2025 Forward-looking statements involve known and unknown risks and uncertainties that may cause future results to differ materially from those suggested by the forward-looking statements. Such risks and uncertainties include, but are not limited to the following; our business, operations, customers, suppliers nd employees; general economic conditions in the areas of the United States in which the Company's customers are located; changes in the market where uniforms are worn, where ...
Superior of panies(SGC) - 2025 Q1 - Quarterly Report
2025-05-08 21:06
Sales Performance - Consolidated net sales decreased by 1.3%, or $1.7 million, for the three months ended March 31, 2025, compared to the same period in 2024[77]. - Branded Products segment net sales decreased by 0.7%, or $0.6 million, primarily due to volume decreases in branded uniform apparel within existing customer accounts[78]. - Healthcare Apparel segment net sales decreased by 6.8%, or $2.0 million, primarily due to volume decreases in institutional apparel within existing customer accounts[79]. - Contact Centers segment net sales increased by 2.9%, or $0.7 million, attributed to a mix of sales growth from new and existing customers[80]. Gross Margin and Expenses - Consolidated gross margin decreased to 36.8% for the three months ended March 31, 2025, down from 39.8% in the same period in 2024[81]. - Gross margin rate for Branded Products segment decreased to 32.0% from 36.5% year-over-year, driven by higher product costs and lower pricing[82]. - Gross margin rate for Healthcare Apparel segment decreased to 37.2% from 39.4% year-over-year, primarily due to higher costs of goods[83]. - Total selling and administrative expenses increased to 36.5% of net sales for the three months ended March 31, 2025, compared to 35.2% in the same period in 2024[84]. Financial Results - The Company generated a net loss of $0.8 million for the three months ended March 31, 2025, compared to net income of $3.9 million in the same period in 2024[75]. - EBITDA for the three months ended March 31, 2025, was $3.5 million, a decrease of 63.3% from $9.6 million in the same period of 2024[105]. - The net (loss) income for the three months ended March 31, 2025, was $(758,000), compared to a net income of $3.9 million in the same period of 2024[105]. Cash Flow and Borrowings - For the three months ended March 31, 2025, net cash used in operating activities was $2.0 million, compared to net cash provided of $9.4 million for the same period in 2024[95][96]. - The Company had $19.0 million in borrowings and $8.0 million in payments on the revolving credit facility for the three months ended March 31, 2025[98]. - The Company has access to a Revolving Credit Facility with a maximum principal amount of $125.0 million and a term loan of $75.0 million[97]. - The Company anticipates continuing to use credit facilities and other borrowings as a source of liquidity in the future[99]. Dividends and Stock Repurchase - The Company paid cash dividends of $2.3 million during the three months ended March 31, 2025, consistent with the same amount paid in 2024[100]. - A new stock repurchase plan was approved on March 7, 2025, authorizing the repurchase of up to $17.5 million worth of common stock[101]. Internal Controls and Risks - The Company expects to maintain effective internal control over financial reporting, with no changes reported during the quarter ended March 31, 2025[110]. - Forward-looking statements indicate potential risks including competition, supply disruptions, and economic conditions that may affect future performance[107].
Superior of panies(SGC) - 2025 Q1 - Quarterly Results
2025-05-08 20:12
Exhibit 99.1 FOR IMMEDIATE RELEASE SUPERIOR GROUP OF COMPANIES REPORTS FIRST QUARTER 2025 RESULTS – Total net sales of $137.1 million versus $138.8 million in prior year first quarter – – Net (loss) income of ($0.8) million versus $3.9 million in prior year first quarter – – EBITDA of $3.5 million versus $9.6 million in prior year first quarter – – Continues to execute on stock repurchase plan – – Board of Directors approves $0.14 per share quarterly dividend – ST. PETERSBURG, Fla., May 8, 2025 – Superior G ...
Superior Group of Companies Reports First Quarter 2025 Results
Globenewswire· 2025-05-08 20:05
– Total net sales of $137.1 million versus $138.8 million in prior year first quarter –– Net (loss) income of ($0.8) million versus $3.9 million in prior year first quarter –– EBITDA of $3.5 million versus $9.6 million in prior year first quarter –– Continues to execute on stock repurchase plan –– Board of Directors approves $0.14 per share quarterly dividend – ST. PETERSBURG, Fla., May 08, 2025 (GLOBE NEWSWIRE) -- Superior Group of Companies, Inc. (NASDAQ: SGC) (the “Company”), today announced its first qu ...
Superior Group (SGC) Exceeds Market Returns: Some Facts to Consider
ZACKS· 2025-04-29 23:20
In the latest market close, Superior Group (SGC) reached $10.29, with a +1.18% movement compared to the previous day. This change outpaced the S&P 500's 0.58% gain on the day. Elsewhere, the Dow saw an upswing of 0.75%, while the tech-heavy Nasdaq appreciated by 0.55%.Shares of the uniform maker witnessed a loss of 7.04% over the previous month, trailing the performance of the Consumer Discretionary sector with its loss of 0.09% and the S&P 500's loss of 0.84%.The investment community will be paying close a ...
Superior Group of Companies' Michael Benstock Featured on Smart Money Circle
Newsfilter· 2025-04-02 12:17
ST. PETERSBURG, Fla., April 02, 2025 (GLOBE NEWSWIRE) -- -- Superior Group of Companies, Inc. (NASDAQ:SGC) today announced that Chairman and Chief Executive Officer Michael Benstock was interviewed on the Smart Money Circle podcast, hosted by renowned investor Adam Sarhan. The interview is now available for viewing on the Smart Money Circle YouTube channel. Investors can also access the interview via Superior Group of Companies' website at https://ir.superiorgroupofcompanies.com/presentations. About Superi ...
Superior Group of Companies' Michael Benstock Featured on Smart Money Circle
GlobeNewswire News Room· 2025-04-02 12:17
ST. PETERSBURG, Fla., April 02, 2025 (GLOBE NEWSWIRE) -- -- Superior Group of Companies, Inc. (NASDAQ: SGC) today announced that Chairman and Chief Executive Officer Michael Benstock was interviewed on the Smart Money Circle podcast, hosted by renowned investor Adam Sarhan. The interview is now available for viewing on the Smart Money Circle YouTube channel. Investors can also access the interview via Superior Group of Companies' website at https://ir.superiorgroupofcompanies.com/presentations. About Super ...