Superior Group of Companies Delivers Strong Q2 Performance Amidst Challenging Market
Despite a choppy demand environment, the Superior Group of Companies has demonstrated its resilience and ability to navigate uncertainty with a strong second quarter 2026 performance. In a conference call on August 4th, CEO Michael Benstock proudly announced that the company had delivered consolidated revenue up by 3% year-over-year, a significant improvement from previous quarters.
This achievement was largely driven by the Branded Products segment, which saw a 6% increase in revenue due to higher volumes with existing customers. The segment's gross margin expansion and SG&A improvement led to a 25% increase in EBITDA, underscoring the company's ability to support its longstanding customer relationships with advanced technology, flexible supply chains, and stellar service.
The Healthcare Apparel segment, however, experienced a decline of 4% in revenue, with gross margin decreasing by 260 basis points. This was largely due to a non-cash inventory write-down tied to the company's strategic decision to accelerate its shift towards a more focused product offering. While SG&A as a percentage of sales increased slightly on the lower revenue base, segment EBITDA declined by $1 million year-over-year.
CEO Michael Benstock acknowledged that the quarter was undeniably challenging but viewed the shorter-term margin pressure and transition under new leadership as necessary steps towards stronger, more sustainable margins and efficient working capital usage over time.
In contrast, the Contact Centers segment experienced a 4% decline in revenue year-over-year but showed signs of improvement with sequential growth for the second consecutive quarter. This was driven by a net increase in agents and stronger conversion from its larger pipeline of new business. Gross margin was lower due to higher human capital costs, which were more than offset by improved SG&A, leading to stronger EBITDA for the quarter.
Mike Kemple, President and Chief Financial Officer, provided further financial details, highlighting consolidated revenue of $148 million, a 3% year-over-year increase. Branded Products revenue increased 6% to $98 million due to volume increases with existing customers, while Healthcare Apparel revenue declined 4% to $27 million.
CEO Benstock expressed optimism about the company's outlook, citing its diversified business model and solid customer relationships as key strengths in navigating a challenging market. The Superior Group of Companies' ability to support its clients with advanced technology, flexible supply chains, and stellar service provides a strong foundation for future growth and margin expansion.
As the company looks ahead, it is well-positioned to capitalize on emerging opportunities, thanks to its solid balance sheet and growing operating cash flow. This flexibility enables strategic investments across each segment, positioning the Superior Group of Companies for continued success in the face of an uncertain market.
