Superior Group of Companies, Inc. (SGC) reported first‑quarter 2026 results on May 4 2026, posting revenue of $140.9 million—up 2.6% to 3% from the same period last year—and a diluted earnings per share of $0.06, a turnaround from a $0.05 loss in Q1 2025.
Revenue exceeded analyst consensus of $140.1 million by $0.8 million, a 0.6% beat. The lift was driven by a 5% year‑over‑year increase in the Branded Products segment and a similar gain in Healthcare Apparel, while the Contact Centers segment declined 8% due to client attrition and higher labor costs. Gross margin improved to 37.1%, reflecting stronger pricing in the branded and healthcare lines and offsetting margin pressure from tariff and freight costs.
EPS of $0.06 fell short of the consensus estimate of $0.08 by $0.02, marking an EPS miss. The miss was largely attributable to the 8% decline in Contact Centers revenue and the higher cost base in that segment, which outweighed the gains in the other two segments. The company’s loss of $0.05 per diluted share in Q1 2025 underscores the improvement in profitability, but the current miss indicates ongoing cost pressures.
Management reaffirmed its full‑year 2026 guidance, projecting net sales of $572 million to $585 million and diluted EPS of $0.54 to $0.66—an increase of 17% to 43% over 2025. The guidance reflects confidence in the company’s diversified three‑segment structure and the expected impact of AI‑driven efficiencies and tariff‑management strategies on future profitability.
"We had a good start to the year. First quarter revenue was up 3% and EBITDA increased to $4.8 million from $3.5 million last year," said CEO Michael Benstock. He added that the company is “staying focused on execution” amid uncertainty around the Iran conflict and that the “record pipeline in our Contact Centers division and the expansion of our sales force are expected to accelerate revenue growth in the second half of 2026.”
"The company is seeing the benefits of the portfolio and cost actions we’ve taken over the last several years, with healthier business mix, improved underlying profitability and stronger earnings power than a year ago," Benstock added.
"We expect performance to be more heavily weighted to the back half of 2026, and our balance sheet and cash generation give us the ability to keep investing in our most differentiated solutions while returning capital to shareholders," he concluded.
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