Superior of panies(SGC) - 2025 Q4 - Annual Report

Financial Performance - The Contact Centers segment accounted for approximately 16% and 17% of net sales for the years ended December 31, 2025 and 2024, respectively [22]. - Comprehensive income for the years ended December 31, 2025 and 2024 included a foreign currency translation adjustment gain of $1.6 million and a loss of $3.4 million, respectively [196]. - A hypothetical increase in the secured overnight financing rate (SOFR) of 100 basis points would have resulted in approximately $0.9 million in additional pre-tax interest expense for the year ended December 31, 2025 [194]. Employee and Segment Information - As of December 31, 2025, the Company had approximately 6,520 employees worldwide, with the Contact Centers segment employing about 3,900 employees [37]. Supply Chain and Sourcing Risks - The Branded Products segment relies on raw materials primarily sourced from China, which poses a risk of significant disruption if sourcing is affected [34]. - The Company does not have a concentration of suppliers in any single country, but it sources the majority of its apparel from Bangladesh, China, Haiti, Madagascar, Vietnam, and the United States [28]. - The Branded Products segment has flexibility in its suppliers, allowing for alternative products if specific raw materials experience significant cost increases [30]. Currency and Pricing Sensitivity - Less than 5% of sales contracts are denominated in foreign currencies, exposing the Company to fluctuations in foreign currency exchange rates [195]. - The promotional products industry is price sensitive, and profit margins could decline if cost increases cannot be passed on to customers [30]. Competitive Position - The Company believes its extensive global sourcing network and proprietary technology capabilities enable it to compete effectively in the market [24].