Superior Group of Companies, Inc. Q4 FY2025 earnings call

• Fourth quarter solid growth in Branded Products drove overall modest Y-O-Y revenue increase, lowered expenses, EBITDA up 19%, EPS nearly doubled. - Market conditions had economic uncertainty but consolidated revenues grew. - Overarching strategy to emerge stronger by strategically investing in growth and driving efficiencies. - Branded Products: 5% Y-O-Y growth, pipeline solid, focus on expanding sales force and leveraging tech. - Healthcare Apparel: Investing to grow demand, opportunities in digital and brick-and-mortar wholesale and direct-to-consumer. - Contact Centers: Pipeline solid, expecting growth in back half of 2026, reduced SG&A.

Branded Products: Had 5% year-over-year growth ($97 million) and 14% sequential increase. Pipeline and order backlog solid with new wins. Healthcare Apparel: Revenue off 5% YOY ($29 million) due to macro uncertainty. Investing to grow demand for Wink and Carhartt brands. Contact Centers: Represents 15% of consolidated revenues, saw 8% annual top-line decline. Pipeline solid, reduced SG&A by nearly $1 million (10%) via cost structure streamlining including AI.

• 2026 revenue range $572 million to $585 million, implying 3% growth at high end. - 2026 EPS range 54 cents to 66 cents, significant improvement over 2025. - Back-end weighted cadence expected for top and bottom lines in 2026.

• Economic uncertainty among customers and prospects across all business lines. - Geopolitical uncertainties affecting customer decision-making and deal-closing velocity. - Macro conditions and economic uncertainty impacting customer commitments and pipeline conversion in contact centers. - Tariff environment impact on customer order patterns in branded products.

Q: Regarding green shoots on Wink and Carhartt brands and healthcare apparel market environment.

A: Continued growth in direct-to-consumer channel for Wink and Carhartt, expecting growth in healthcare apparel segment.

Q: On contact center, revenue stabilization, pipeline improvement, macro-driven hesitancy.

A: Cautiously optimistic, seeing positive signs on contact center new customer front, expecting growth in back half of 2026.

Q: On branded product revenue growth, cause of increase.

A: Variety of factors including expanded sales force, good program wins, strong orders.

Q: Margin expansion source.

A: Expect gross margin improvement, SG&A line improvement, lower interest expense.

Q: AI tools in business.

A: Using many tools, monitoring calls, coaching agents, accent smoothing, noise cancellation.

Q: Margin improvement in branded products, pricing vs cost reduction.

A: Both, aggressively searching for best vendors globally and exploring price ceiling.

Q: Margin impact from investing in salespeople in branded product.

A: Investment in salespeople with commission only and salaried, pays off 12-18 months from now.

Q: Branded product growth breakdown between new customers and existing.

A: Expand share of wallet with existing, actively involved in RFPs for new logos, RFP pipeline strong.

Q: Healthcare business state, market share, competition.

A: Positive about market, shortage of healthcare workers, seeing green shoots in retail side, hopeful for improvement in institutional healthcare.

Q: Contact center business outlook, competitive dynamic.

A: Had challenges with customer loss and slow decision-making, seeing shift, base of customers more stable, expecting growth in latter part of second quarter into second half.