Superior Group of Companies, Inc. reported a slight increase in consolidated net sales for the fiscal year ended December 31, 2025, totaling $566.2 million, up from $565.7 million in 2024. The Branded Products segment, which includes customized merchandising solutions and branded uniform programs, saw a 2.2% increase in sales to $361.1 million, primarily driven by the acquisition of 3 Point Branding in December 2024. However, the Healthcare Apparel segment experienced a decline of 2.8% to $115.9 million, attributed to decreased sales volumes within existing customer accounts. The Contact Centers segment also faced challenges, with sales dropping 4.6% to $92.5 million due to macroeconomic headwinds affecting client retention.
Despite the increase in sales, the company reported a significant decline in profitability, with net income falling to $7.0 million from $12.0 million in the previous year, marking a 41.7% decrease. This decline was primarily driven by reduced gross margins across all segments, which fell to 37.6% from 39.0% in 2024. The gross margin for the Branded Products segment decreased to 34.3%, while the Healthcare Apparel and Contact Centers segments saw declines to 36.2% and 52.9%, respectively. Selling and administrative expenses remained relatively stable, totaling $199.5 million, a slight decrease from $199.9 million in 2024.
In terms of strategic developments, the company continued to focus on its acquisition strategy, highlighted by the purchase of 3 Point Branding, which contributed to the growth in the Branded Products segment. The company also announced a stock repurchase program, authorizing the repurchase of up to $17.5 million of its common stock, with approximately $10.1 million remaining under the program as of December 31, 2025. Additionally, the company maintained a workforce of approximately 6,520 employees, with a significant portion employed in its Contact Centers segment.
Looking ahead, Superior Group of Companies expressed cautious optimism regarding its growth prospects, particularly in the Branded Products and Healthcare Apparel segments. The company plans to leverage synergies from recent acquisitions and expand its market share. However, it also acknowledged potential risks, including ongoing macroeconomic challenges, fluctuations in raw material costs, and the impact of geopolitical events on its supply chain. The company remains committed to monitoring these factors closely as it navigates the evolving market landscape.
About SUPERIOR GROUP OF COMPANIES, INC.
Superior Group of Companies, Inc. is a diversified provider of branded products, healthcare apparel, and contact center services. It designs and sells customized promotional merchandise, uniforms, and healthcare apparel to various industries, and offers outsourced customer support through nearshore contact centers. The company leverages global sourcing, proprietary brands, and operational expertise to serve North American and international markets with a focus on quality, innovation, and customer relationships.
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