Q2 2026 Superior Group of Companies Inc Earnings Call Transcript
Key Points
- Consolidated revenue grew 3% year-over-year, with EBITDA up 27% to $7.7 million and adjusted diluted EPS of $0.21, more than doubling the prior year.
- Branded Products segment delivered 6% revenue growth, driven by higher volumes with existing customers, and achieved a 25% increase in segment EBITDA.
- SG&A as a percentage of sales improved by 160 basis points, reflecting expense leverage and improved credit loss expense in Branded Products and Contact Centers.
- Contact Centers segment showed sequential revenue improvement for the second consecutive quarter, with a stronger new business pipeline and increased agent conversion.
- The company maintains a solid balance sheet with $23 million in cash, $18 million in first-half operating cash flow, and continues to return capital via dividends and share repurchases.
- Management remains optimistic about growth opportunities, citing a strong pipeline in Branded Products and potential for margin expansion across segments.
- Healthcare Apparel segment revenue declined 4% year-over-year, with gross margin down 260 basis points due to a $2.6 million non-cash inventory write-down.
- The healthcare apparel segment EBITDA declined by $1 million year-over-year, and the company expects continued margin pressure through the balance of 2026.
- Contact Centers segment revenue was down 4% year-over-year, with gross margin down 170 basis points due to higher human capital costs for onboarding new customers.
- The company recognized a $2.6 million pre-tax non-cash impairment charge related to a trade name in the healthcare apparel segment, impacting reported net income.
- Full-year 2026 guidance remains unchanged, reflecting a back-half-weighted cadence and potential variability from the healthcare apparel transition, which may limit near-term upside.
- Consumer spending in the healthcare apparel market is pressured by inflation, leading to more prudent purchasing behavior among caregivers.
Good morning and welcome to the Superior Group of Companies Second Quarter 2026 Conference Call.
With us today are Michael Benstock, Chief Executive Officer, and Mike Kimple, President and Chief Financial Officer.
In addition, Jay Kimmelstein, President of the company's Branded Products segment, will join in today's Q&A session.
As a reminder, this conference call is being recorded.
This call may contain forward-looking statements regarding the company's plans. Initiatives, and strategies, and the anticipated financial performance of the company, including but not limited to sales and profitability.
Such statements are based upon management's current expectations, projections, estimates, and assumptions.
Words such as expect, believe, anticipate, think, outlook, hope and variations of such words and similar expressions identify such forward-looking statements.
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
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