Superior Group 2025 Q2 Earnings Strong Performance as Net Income Surges 166%

Superior Group reported solid Q2 2025 results, with revenue and net income exceeding prior-year levels. The company maintained its full-year revenue guidance, reflecting confidence in its strategic direction and market positioning.

Superior Group of Companies (NASDAQ: SGC) reported Q2 2025 financial results that surpassed expectations, with total revenue rising 9.3% year-over-year to $144.04 million. The company delivered a 166% year-over-year increase in net income to $1.55 million and raised its EPS by 150.0% to $0.10, despite mixed post-earnings stock performance.

Revenue
The company’s total revenue of $144.04 million in Q2 2025 was driven by a strong showing in its Branded Products segment, which saw a 14% year-over-year increase in sales. The Healthcare Apparel segment contributed $28.25 million in revenue, while Contact Centers added $23.98 million. The company also reported $92.65 million in Branded Products revenue, reflecting continued momentum in that area. Net intersegment eliminations reduced total consolidated revenue by $832,000. Collectively, these performance metrics underscore the company’s ability to deliver broad-based revenue growth in a challenging economic environment.

Earnings/Net Income
Earnings surged significantly, with net income reaching $1.55 million in Q2 2025, representing a 158.5% increase from $600,000 in the same period of 2024. Earnings per share (EPS) also rose dramatically to $0.10, up from $0.04 a year ago, marking a 150.0% year-over-year improvement. The substantial increase in profitability outpaced revenue growth, indicating strong operational efficiency and cost management.

Price Action
The stock of Superior Group experienced a mixed performance following the earnings report, with a 1.24% decline on the latest trading day, an 8.94% decline for the week, and a 13.69% decline month-to-date.

Post-Earnings Price Action Review
The performance of a strategy to purchase SGC shares immediately following the earnings report and hold for 30 days yielded a negative return of -30.22%, significantly underperforming the 0.00% benchmark. The compound annual growth rate (CAGR) for the period was -11.68%, with a maximum drawdown of 47.01% and a Sharpe ratio of -0.25. These metrics suggest a high-risk, low-reward investment scenario with considerable volatility.

CEO Commentary
Michael Benstock, CEO of Superior Group, highlighted the company’s 9% year-over-year revenue growth, driven by the 14% increase in Branded Products sales and a sequential improvement from Q1. He emphasized the company’s ability to leverage diverse sourcing channels and marketing strategies, coupled with a strong balance sheet and cost actions, to navigate market conditions. Benstock expressed cautious optimism about modestly improving client sentiment and ongoing efforts to invest in future growth.

Guidance
Superior Group maintained its full-year 2025 revenue guidance range of $550 million to $575 million, with no upward or downward revisions. The company’s forward-looking statements include its strategic focus on navigating economic conditions, strengthening market positioning, and returning capital to shareholders through dividends and share repurchases.

Additional News
In its Q2 2025 earnings report, Superior Group announced a $0.14 per share quarterly dividend, payable on August 29, 2025, to shareholders of record as of August 18. The company also continued its share repurchase program, allocating $4.0 million to repurchase approximately 390,000 shares during the quarter, with $12.3 million remaining in its repurchase authorization. The Branded Products segment remained the standout performer, with a 14% year-over-year sales increase. The company emphasized its strategic focus on leveraging diverse sourcing channels and maintaining a strong balance sheet to support both growth and shareholder returns.