The following is a summary of the Superior Group of Companies, Inc. (SGC) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Superior Group of Companies, Inc. reported a Q2 revenue of $132 million, an increase of 2% year-over-year.

• EBITDA decreased to $5.6 million from $7.4 million, reflecting a lower margin of 4.2% compared to 5.8% in the same quarter last year.

• Diluted earnings per share (EPS) was $0.04, down from $0.08 year-over-year.

Business Progress:

• Despite challenges, the company expects to recover and recognize delayed revenue from supply chain issues in Q3, particularly in branded products and healthcare apparel segments.

• SGC is focused on long-term growth, leveraging strategic investments across its business segments to capture additional market share.

• Continued investments are being made in technology and talent, specifically in the contact centers segment to support growing customer demand.

Opportunities:

• Despite current softening market conditions, SGC sees growth potential in its three key segments, particularly as it continues to expand and optimize its direct-to-consumer channels and digital sales.

• The company is preparing for an increase in demand, potentially benefiting from its strong position in large and growing end markets.

Risks:

• Noted impacts from softening market conditions and supply chain delays that have led to an underperformance compared to projections.

• Increased SG&A costs, driven by investments in marketing and expanding direct-to-consumer efforts, may continue to pressure profitability in the short term.

More details: Superior IR

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