Superior Group of Companies (SGC) Sidoti September Small-Cap Virtual Conference summary

Business segment overview

• Branded products segment generates $350M annually, serving major brands with promotional items and uniforms in a $24B fragmented market, with growth from both organic efforts and acquisitions.

• Healthcare apparel segment operates in a $4B market, offering institutional and retail-oriented products, with recent expansion into direct-to-consumer digital sales.

• Contact center segment is the fastest-growing and highest-margin, with a 26% five-year sales CAGR, serving small to medium businesses from nearshore locations, and leveraging technology and a new sales force for growth.

Recent performance and operational adjustments

• Q2 results were below expectations due to supply chain delays and order timing shifts, but full-year guidance was reiterated.

• Adjustments in supply chain management and buying patterns have been made to mitigate future disruptions.

• Share buyback was initiated following a significant drop in share price, reflecting confidence in valuation.

Growth strategies by segment

• Contact center growth is driven by a new sales team, marketing efforts, and technology investments, targeting both new and existing customers.

• Branded products growth focuses on recruiting and supporting salespeople, leveraging technology to double sales output, and expanding into digital and omni-channel sales.

• Healthcare apparel is expanding through digital wholesale channels and direct-to-consumer, with strong investments in growth and profitability.