SGC Stock Forecast & Price Target

Superior Group of Companies Inc. has demonstrated robust financial performance with a 14.0% year-over-year revenue increase in its Branded Products segment, contributing $92.6 million, which accounts for 64% of total revenue. Additionally, the Healthcare Apparel segment also showed positive momentum with a 6.2% revenue growth, reaching $28.3 million and being driven by increased sales of Wink scrubs and Carhartt-licensed apparel. This growth, combined with an intense focus on expense management, has positively influenced adjusted EBITDA, positioning the company favorably for future financial stability and expansion.

The negative outlook on Superior Group of Companies Inc is influenced by a notable decline in revenue within its Contact Centers segment, which constitutes 16% of total revenue, experiencing a modest year-over-year decrease of 2.9% in Q2/25. Additionally, despite a decline in selling and administrative expenses as a percentage of revenue, external economic challenges have led to customer downsizing and attrition, raising concerns about future revenue stability. These combined factors suggest vulnerability in sustaining growth across its operating segments, particularly in light of the reliance on the Branded Products segment for the majority of revenue generation.