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false 0000095574 0000095574 2026-08-04 2026-08-04
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
 
FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported) August 4, 2026
 
Superior Group of Companies, Inc.
(Exact name of registrant as specified in its charter)
 
Florida
001-05869
11-1385670
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
     
 
200 Central Avenue, Suite 2000, St. Petersburg, Florida
(Address of principal executive offices)
33701
(Zip Code)
 
Registrant's telephone number including area code: (727) 397-9611
Not Applicable
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
 
Emerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock
SGC
NASDAQ
 
 

 
Item 2.02    Results of Operations and Financial Condition
 
The following information is being furnished under Item 2.02 of Form 8-K: Press release by Superior Group of Companies, Inc. (the “Company”) announcing its results of operations for the quarter ended June 30, 2026. A copy of this press release is attached as Exhibit 99.1 to this Form 8-K.
 
Item 9.0l     Financial Statements and Exhibits
 
(d) Exhibits
 
  Exhibit Number   Description
  99.1   Press Release, dated August 4, 2026
  104   Cover Page Interactive Data File (embedded within the Inline XBRL document)
                                             
Signature
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunder duly authorized.
 
SUPERIOR GROUP OF COMPANIES, INC.
By:
/s/ Michael Koempel
Michael Koempel
President & Chief Financial Officer
 
 
 
 
 
Date: August 4, 2026
 
 
EX-99.1 2 ex_968533.htm EXHIBIT 99.1 ex_968533.htm
 

Exhibit 99.1

logo01.jpg

FOR IMMEDIATE RELEASE

 

SUPERIOR GROUP OF COMPANIES REPORTS SECOND QUARTER 2026 RESULTS

 

• Total net sales of $147.8 million, up from $144.0 million in prior year second quarter
• Net income of $1.2 million, including a non-cash tradename impairment charge, $2 million after tax, versus $1.6 million in prior year second quarter
• Adjusted EBITDA of $7.7 million, up from $6.1 million in prior year second quarter
• Confirms full-year Outlook 
• Board of Directors approves $0.14 per share quarterly dividend

 

ST. PETERSBURG, Fla., August 4, 2026 – Superior Group of Companies, Inc. (NASDAQ: SGC) (the “Company”), today announced its second quarter 2026 results.

 

“We’ve demonstrated the earnings power of our diversified business with Branded Products performing especially well this quarter, resulting in an adjusted EPS that was more than double the prior year’s second quarter. We are navigating through soft market conditions, and we see growth opportunities ahead for all three of our attractive businesses,” said Michael Benstock, Chief Executive Officer.  “Our guidance continues to reflect stronger results in the back half of the year given seasonal factors. Ultimately, our diverse end markets, high customer retention and flexible supply chain combined with our healthy balance sheet allows us to drive continued growth and optimize shareholder value including through our attractive dividend yield and opportunistic share repurchases.”

 

Second Quarter Results

 

For the second quarter ended June 30, 2026, net sales were $147.8 million, up from second quarter 2025 net sales of $144.0 million. Net income was $1.2 million or $0.08 per diluted share compared to net income of $1.6 million or $0.10 per diluted share for the second quarter of 2025.

 

During the second quarter the Company recorded a trade name impairment charge in the Healthcare Apparel segment of $2.6 million (or $2.0 million net of tax, or $0.13 per diluted share). The charge does not affect the Company’s cash position, cash flow from operating activities or bank debt covenants.

 

On an adjusted basis, excluding the impairment charge, second quarter net income was $3.2 million or $0.21 per diluted share up from net income of $1.6 million, or $0.10 per diluted share for the second quarter of 2025. At the conclusion of this press release is a reconciliation of reported-to-adjusted results, including a description of the significant item.

 

Quarterly Dividend

 

The Board of Directors declared a quarterly dividend of $0.14 per share, payable August 28, 2026 to shareholders of record as of August 14, 2026.

 

2026 Full-Year Outlook

 

The Company continues to forecast full-year 2026 net sales in the range of $572.0 million to $585.0 million, up from 2025 net sales of $566.2 million, and full-year adjusted earnings per diluted share in the range of $0.54 to $0.66, up from $0.46 in 2025.

 

1

 

Webcast and Conference Call

 

The Company will host a webcast and conference call at 8:00am Eastern Time today. The live webcast and archived replay can be accessed in the investor relations section of the Company's website at https://ir.superiorgroupofcompanies.com/Presentations. Interested individuals may also join the teleconference by dialing 1-844-861-5505 for U.S. dialers and 1-412-317-6586 for international dialers. The Canadian toll-free number is 1-866-605-3852. Please ask to be joined to the Superior Group of Companies call. A telephone replay of the teleconference will be available through August 18, 2026. To access the replay, dial 1-855-669-9658 in the United States or Canada, or 1-412-317-0088 from international locations. Please reference conference number 5851649 for replay access.

 

Disclosure Regarding Forward-Looking Statements

 

Certain matters discussed in this press release are forward-looking statements intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified by use of the words may, will, should, could, expect,” “anticipate, estimate, believe, intend, project, potential, or plan or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements in this press release include 2026 guidance of net sales and earnings per diluted share and may also include, without limitation: (1) projections of revenue, income, and other items relating to our financial position and results of operations, including short term and long term plans for cash, (2) statements of our plans, objectives, strategies, goals and intentions, (3) statements regarding the capabilities, capacities, market position and expected development of our business operations and (4) statements of expected industry and general economic trends.

 

Such forward-looking statements are subject to certain risks and uncertainties that may materially adversely affect the anticipated results. Such risks and uncertainties include, but are not limited to, the following: the impact of competition; the impact of global conflicts, such as the Russia-Ukraine War and the joint U.S.-Israeli War with Iran in 2026, uncertainties related to tariffs, duties, trade wars and related matters, supply disruptions, inflationary environments (including with respect to shipping costs and the cost of finished goods and raw materials and shipping costs), employment levels (including labor shortages), and general economic and political conditions in the areas of the world in which the Company operates or from which it sources its supplies or the areas of the United States of America (U.S. or United States) in which the Companys customers are located; changes in the healthcare, retail chain, food service, transportation and other industries where uniforms and service apparel are worn; our ability to identify suitable acquisition targets, discover liabilities associated with such businesses during the diligence process, successfully integrate any acquired businesses, or successfully manage our expanding operations; the price and availability of raw materials; attracting and retaining senior management and key personnel; the Company's ability to maintain effective internal control over financial reporting; and other factors described in the Companys filings with the Securities and Exchange Commission ("SEC"), including those risks described in Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 entitled "Risk Factors" and the Quarterly Report on Form 10-Q for the quarter ended June 30, 2026. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements made herein and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and we disclaim any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances, except as may be required by law.

 

About Superior Group of Companies, Inc. (SGC):

 

Established in 1920, Superior Group of Companies is comprised of three attractive business segments each serving large, fragmented and growing addressable markets. Across Healthcare Apparel, Branded Products and Contact Centers, each segment enables businesses to create extraordinary brand engagement experiences for their customers and employees. SGC’s commitment to service, quality, advanced technology, and omnichannel commerce provides unparalleled competitive advantages. We are committed to enhancing shareholder value by continuing to pursue a combination of organic growth and strategic acquisitions. For more information, visit www.superiorgroupofcompanies.com.

 

Investor Relations Contact:
Investors@Superiorgroupofcompanies.com

 

2

  

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except shares and per share data)

  

   

Three Months Ended June 30,

   

Six Months Ended June 30,

 
   

2026

   

2025

   

2026

   

2025

 

Net sales

  $ 147,836     $ 144,045     $ 288,714     $ 281,142  
                                 

Costs and expenses:

                               

Cost of goods sold

    91,717       88,719       180,261       175,375  

Selling and administrative expenses

    51,327       52,240       101,695       102,342  

Interest expense, net

    981       1,250       1,893       2,495  

Tradename impairment charge

    2,600       -       2,600       -  
      146,625       142,209       286,449       280,212  

Income before income tax (benefit) expense

    1,211       1,836       2,265       930  

Income tax (benefit) expense

    (10 )     285       210       137  

Net income

  $ 1,221     $ 1,551     $ 2,055     $ 793  
                                 

Net income per share:

                               

Basic

  $ 0.08     $ 0.10     $ 0.14     $ 0.05  

Diluted

  $ 0.08     $ 0.10     $ 0.14     $ 0.05  
                                 

Weighted average shares outstanding during the period:

                               

Basic

    14,495,144       14,813,984       14,562,081       15,206,819  

Diluted

    14,907,818       15,101,942       14,912,832       15,573,692  
                                 

Cash dividends per common share

  $ 0.14     $ 0.14     $ 0.28     $ 0.28  

   

3

 

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except shares and par value data)

 

   

June 30,

   

December 31,

 
   

2026

   

2025

 
   

(Unaudited)

         

ASSETS

               

Current assets:

               

Cash and cash equivalents

  $ 22,787     $ 23,691  

Accounts receivable, net

    93,948       104,336  

Inventories

    90,492       97,474  

Contract assets

    57,134       48,903  

Prepaid expenses and other current assets

    15,105       13,259  

Total current assets

    279,466       287,663  

Property, plant and equipment, net

    35,294       37,352  

Operating lease right-of-use assets

    11,559       12,620  

Deferred tax asset

    14,970       15,003  

Intangible assets, net

    42,894       47,254  

Goodwill

    2,583       2,583  

Other assets

    21,754       19,369  

Total assets

  $ 408,520     $ 421,844  
                 

LIABILITIES AND SHAREHOLDERS’ EQUITY

               

Current liabilities:

               

Accounts payable

  $ 49,631     $ 48,343  

Other current liabilities

    49,725       53,041  

Current portion of long-term debt

    7,500       6,563  

Current portion of acquisition-related contingent liabilities

    612       -  

Total current liabilities

    107,468       107,947  

Long-term debt

    74,465       87,093  

Long-term pension liability

    15,236       15,010  

Long-term acquisition-related contingent liabilities

    410       826  

Long-term operating lease liabilities

    6,880       7,939  

Other long-term liabilities

    10,678       10,211  

Total liabilities

    215,137       229,026  

Shareholders’ equity:

               

Preferred stock, $.001 par value - authorized 300,000 shares (none issued)

    -       -  

Common stock, $.001 par value - authorized 50,000,000 shares, issued and outstanding 15,945,623 and 15,730,615 shares, respectively

    16       16  

Additional paid-in capital

    85,673       84,628  

Retained earnings

    110,206       112,871  

Accumulated other comprehensive loss, net of tax:

    (2,512 )     (4,697 )

Total shareholders’ equity

    193,383       192,818  

Total liabilities and shareholders’ equity

  $ 408,520     $ 421,844  

 

 

4

 

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

 

   

Six Months Ended June 30,

 
   

2026

   

2025

 

CASH FLOWS FROM OPERATING ACTIVITIES

               

Net income

  $ 2,055     $ 793  

Adjustments to reconcile net income to net cash provided by operating activities:

               

Depreciation and amortization

    5,742       6,182  

Inventory write-downs

    4,663       1,042  

Credit loss expense

    1,665       2,100  

Share-based compensation expense

    1,699       2,561  

Tradename impairment charge

    2,600       -  

Change in fair value of acquisition-related contingent liabilities

    196       520  

Non-cash operating lease expense

    2,105       1,824  

Other, net

    110       182  

Changes in assets and liabilities:

               

Accounts receivable

    9,115       (569 )

Contract assets

    (8,185 )     (1,682 )

Inventories

    2,386       (10,692 )

Prepaid expenses and other current assets

    (568 )     1,267  

Other assets

    (2,453 )     (789 )

Accounts payable and other current liabilities

    (4,503 )     (84 )

Other long-term liabilities

    1,108       291  

Net cash provided by operating activities

    17,735       2,946  
                 

CASH FLOWS FROM INVESTING ACTIVITIES

               

Additions to property, plant and equipment

    (1,883 )     (2,716 )

Net cash used in investing activities

    (1,883 )     (2,716 )
                 

CASH FLOWS FROM FINANCING ACTIVITIES

               

Borrowings under revolving lines of credit

    26,000       57,000  

Payments under revolving lines of credit

    (35,000 )     (41,000 )

Payments of term loan

    (2,813 )     (2,812 )

Payments of cash dividends

    (4,367 )     (4,515 )

Shares withheld for taxes net of proceeds received on exercise of stock options

    (244 )     189  

Common shares repurchased and retired

    (763 )     (7,926 )

Net cash (used in) provided by financing activities

    (17,187 )     936  
                 

Effect of currency exchange rates on cash

    431       1,094  

Net (decreases) increases in cash and cash equivalents

    (904 )     2,260  

Cash and cash equivalents balance, beginning of period

    23,691       18,766  

Cash and cash equivalents balance, end of period

  $ 22,787     $ 21,026  

 

5

 

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

NON-GAAP FINANCIAL MEASURES

(Unaudited)

(In thousands)

 

   

Three Months Ended June 30,

   

Six Months Ended June 30,

 
   

2026

   

2025

   

2026

   

2025

 

Net income

  $ 1,221     $ 1,551     $ 2,055     $ 793  

Interest expense, net

    981       1,250       1,893       2,495  

Income tax (benefit) expense

    (10 )     285       210       137  

Segment depreciation and amortization

    2,812       2,888       5,597       6,002  

Corporate depreciation and amortization

    72       90       145       180  

Tradename impairment charge

    2,600       -       2,600       -  

Adjusted EBITDA(1)

  $ 7,676     $ 6,064     $ 12,500     $ 9,607  

Adjusted EBITDA margin(1)

    5.2 %     4.2 %     4.3 %     3.4 %
                                 

Net income

  $ 1,221     $ 1,551     $ 2,055     $ 793  

Add backs:

                               

Tradename impairment charge

    2,600       -       2,600       -  

Tax impact of adjustments(2)

    (640 )     -       (640 )     -  

Adjusted net income(3)

  $ 3,181     $ 1,551     $ 4,015     $ 793  
                                 

Diluted net income per share

  $ 0.08     $ 0.10     $ 0.14     $ 0.05  

Add back items, after-tax, per diluted share

    0.13       -       0.13       -  

Diluted adjusted net income per share(3)

  $ 0.21     $ 0.10     $ 0.27     $ 0.05  
                                 

Weighted average shares outstanding during the period:

                               

Diluted, as reported and adjusted

    14,907,818       15,101,942       14,912,832       15,573,692  
                                 
   

Three Months Ended June 30,

   

Six Months Ended June 30,

 
   

2026

   

2025

   

2026

   

2025

 

Income before income tax expense

  $ 1,211     $ 1,836     $ 2,265     $ 930  

Interest expense, net

    981       1,250       1,893       2,495  

Corporate selling and administrative expenses

    5,496       5,437       11,225       12,032  

Segment depreciation and amortization

    2,812       2,888       5,597       6,002  

Tradename impairment charge

    2,600       -       2,600       -  

Total Segment Adjusted EBITDA(4)

  $ 13,100     $ 11,411     $ 23,580     $ 21,459  

 

(1) Adjusted EBITDA, which is a non-GAAP financial measure, is defined as net income excluding interest expense, net, income tax expense, impairments and depreciation and amortization expense. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by net sales. The Company believes Adjusted EBITDA is an important measure of operating performance because it allows management, investors and others to evaluate and compare the Company’s core operating results from period to period by removing (i) the impact of the Company’s capital structure (interest expense from outstanding debt), (ii) tax consequences, (iii) asset base (depreciation and amortization) and (iv) impairments. The Company uses Adjusted EBITDA internally to monitor operating results and to evaluate the performance of its business. In addition, the compensation committee has used Adjusted EBITDA in evaluating certain components of executive compensation, including performance-based annual incentive programs. Adjusted EBITDA is not a measure of financial performance under GAAP.  Adjusted EBITDA should not be considered in isolation or as an alternative to net income, cash flows from operating activities or any other measure determined in accordance with GAAP. The items excluded to calculate Adjusted EBITDA are significant components in understanding and assessing the Company’s results of operations. The Company’s Adjusted EBITDA may not be comparable to a similarly titled measure of another company because other entities may not calculate Adjusted EBITDA in the same manner.

 

6

 

 

 

(2) The tax impact of adjustments includes the tax effect of each separate adjustment based on the statutory tax rate for the jurisdiction(s) in which the adjustment was taxable or deductible, and the tax effect of items that relate to tax specific financial transactions.

(3) Adjusted net income and diluted adjusted net income per share, which are non-GAAP measures, are defined as net income (loss) and net income (loss) per share, excluding the impacts of impairment and pension plan termination charges. Management believes adjusted net income (loss) and diluted adjusted net income (loss) per share provides useful information to investors because it allows management, investors and others to evaluate and compare our operating results from period to period by removing the impact of impairment and pension plan termination charges that are not reflective of our core business. Adjusted net income and Diluted adjusted net income per share should not be considered in isolation or as an alternative to net income or net income per share or any other measure determined in accordance with GAAP. The items excluded to calculate Adjusted net income and Diluted adjusted net income per share are significant components in understanding and assessing the Company’s net income. The Company’s Adjusted net income and Diluted adjusted net income per share may not be comparable to a similarly titled measure of another company because other entities may not calculate Adjusted net income and Diluted adjusted net income per share in the same manner.

(4) Segment Adjusted EBITDA, as reported below for each segment, is our primary measure of segment profitability under U.S. GAAP ASC 280 “Segment Reporting”. Amounts included in income before income tax expense and excluded from Segment Adjusted EBITDA include: interest expense, net, impairments and depreciation and amortization expense. Total Segment Adjusted EBITDA is a non-GAAP financial measure and is reconciled to its most closely comparable GAAP metric of income before income tax expense (benefit) in the table above. 

 

7

 

SUPERIOR GROUP OF COMPANIES, INC. AND SUBSIDIARIES

SUPPLEMENTAL INFORMATION - REPORTABLE SEGMENTS

(Unaudited)

(In thousands)
   

Branded Products

   

Healthcare Apparel

   

Contact Centers

   

Intersegment Eliminations

   

Total

 

For the Three Months Ended June 30, 2026:

                                       

Net sales

  $ 98,390     $ 27,231     $ 23,094     $ (879 )   $ 147,836  

Cost of goods sold

    62,518       18,264       11,344       (409 )     91,717  

Gross margin

    35,872       8,967       11,750       (470 )     56,119  

Selling and administrative expenses

    26,001       9,946       10,354       (470 )     45,831  

Tradename impairment charge

    -       2,600       -       -       2,600  

Add backs:

                                       

Tradename impairment charge

    -       2,600       -       -       2,600  

Segment depreciation and amortization

    1,344       819       649       -       2,812  

Segment Adjusted EBITDA(4)

  $ 11,215     $ (160 )   $ 2,045     $ -     $ 13,100  

Less corporate selling and administrative expenses

                                    5,496  

Add back corporate depreciation and amortization

                                    72  

Adjusted EBITDA(1)

                                  $ 7,676  
                                         
   

Branded Products

   

Healthcare Apparel

   

Contact Centers

   

Intersegment Eliminations

   

Total

 

For the Three Months Ended June 30, 2025:

                                       

Net sales

  $ 92,647     $ 28,253     $ 23,977     $ (832 )   $ 144,045  

Cost of goods sold

    59,631       18,237       11,364       (513 )     88,719  

Gross margin

    33,016       10,016       12,613       (319 )     55,326  

Selling and administrative expenses

    25,432       10,078       11,612       (319 )     46,803  

Add backs:

                                       

Segment depreciation and amortization

    1,395       854       639       -       2,888  

Segment Adjusted EBITDA(4)

  $ 8,979     $ 792     $ 1,640     $ -     $ 11,411  

Less corporate selling and administrative expenses

                                    5,437  

Add back corporate depreciation and amortization

                                    90  

Adjusted EBITDA(1)

                                  $ 6,064  
                                         

 

 

8

 

   

Branded Products

   

Healthcare Apparel

   

Contact Centers

   

Intersegment Eliminations

   

Total

 

For the Six Months Ended June 30, 2026:

                                       

Net sales

  $ 189,259     $ 55,832     $ 45,347     $ (1,724 )   $ 288,714  

Cost of goods sold

    122,400       36,684       21,983       (806 )     180,261  

Gross margin

    66,859       19,148       23,364       (918 )     108,453  

Selling and administrative expenses

    50,747       20,724       19,917       (918 )     90,470  

Tradename impairment charge

    -       2,600       -       -       2,600  

Add backs:

                                       

Tradename impairment charge

    -       2,600       -       -       2,600  

Segment depreciation and amortization

    2,718       1,642       1,237       -       5,597  

Segment Adjusted EBITDA(4)

  $ 18,830     $ 66     $ 4,684     $ -     $ 23,580  

Less corporate selling and administrative expenses

                                    11,225  

Add back corporate depreciation and amortization

                                    145  

Adjusted EBITDA(1)

                                  $ 12,500  
                                         
   

Branded Products

   

Healthcare Apparel

   

Contact Centers

   

Intersegment Eliminations

   

Total

 

For the Six Months Ended June 30, 2025:

                                       

Net sales

  $ 179,121     $ 55,516     $ 48,202     $ (1,697 )   $ 281,142  

Cost of goods sold

    118,418       35,367       22,608       (1,018 )     175,375  

Gross margin

    60,703       20,149       25,594       (679 )     105,767  

Selling and administrative expenses

    48,852       19,604       22,533       (679 )     90,310  

Add backs:

                                       

Segment depreciation and amortization

    2,875       1,766       1,361       -       6,002  

Segment Adjusted EBITDA(4)

  $ 14,726     $ 2,311     $ 4,422     $ -     $ 21,459  

Less corporate selling and administrative expenses

                                    12,032  

Add back corporate depreciation and amortization

                                    180  

Adjusted EBITDA(1)

                                  $ 9,607  
                                         
                                         

 

 

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