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- **Revenue Outlook Adjusted Up**: FY25 revenue guidance raised to $560-570M (midpoint +3%), driven by Branded Products pipeline recovery.
- **Cost Efficiency**: $4M SG&A savings (7% YoY) and $13M annualized cost savings program fully realized.
- **Tariff Resilience**: Branded Products pass through tariffs via dynamic pricing, while Healthcare offsets costs via Haiti sourcing.
- **Contact Center Recovery**: Pipeline growth expected in 2026 despite Q3 client loss impacting $2M annualized revenue.
- **Acquisition Momentum**: Actively pursuing 25,000+ Branded Products competitors with attractive valuations and strategic geographies.

**【CEO Opening Remarks】**
- Q3 2025 revenue of $138 million, up 7% YoY, with Branded Products ($85M), Healthcare Apparel ($32M), and Contact Centers ($23M) segments.
- Full-year revenue outlook adjusted to $560-570M (midpoint +3%), reflecting sequential improvement and strong pipeline despite macro challenges.
- SG&A expenses reduced by $4M (7% YoY) due to cost control, with all segments improving margins.
- Branded Products revenue down 8% YoY due to tariff-driven order pull-forward, but Q2-Q3 combined revenue up vs. 2024, with 25,000+ competitors in fragmented market.
- Healthcare Apparel down 5% YoY, but leveraging Haiti sourcing to offset tariffs, with secular growth drivers.
- Contact Centers down 9% YoY from client downsizing, but pipeline improving for 2026 growth.

**【CFO Financial Commentary】**
- Gross margin 38.3% (down 210bps YoY), with Branded Products at 34.8% (down 140bps), Healthcare at 38.5%, and Contact Centers at 52.9%.
- EBITDA $7.5M (up 23% QoQ), net income $2.7M (up 69% QoQ), with $17M cash and $100M+ liquidity.
- Updated FY25 revenue guidance reflects $560-570M range, up from prior $550-575M.

**【Q&A Highlights】**
- **Tariff Environment**: Recent 100% China tariff reversal boosted Branded Products pipeline, with 3 Point acquisition adding $2.9M revenue.
- **Inventory Management**: Opportunistically sourced from low-tariff jurisdictions; Healthcare leverages Haiti for duty savings.
- **Contact Center Impact**: Lost solar client reduced annualized revenue by ~$2M, but pipeline shows early 2026 growth signs.
- **Pricing Power**: Branded Products pass through tariffs via order-level pricing; Healthcare offset 2024 tariffs with price increases.
- **Acquisition Strategy**: Actively evaluating 25,000+ Branded Products competitors, targeting low-cost geographies and new verticals.
- **Cost Savings**: $13M annualized savings program fully implemented, with $4M YoY SG&A reduction.


Superior Group of Companies, Inc. (SGC) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

SGC

SGC fundamentals

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