Superior Group of Companies, Inc. reported significant financial growth for the three and nine months ended September 30, 2024, compared to the same periods in 2023. Net sales for the third quarter reached $149.7 million, a 10.0% increase from $136.1 million in 2023. For the nine months, net sales totaled $420.3 million, up 6.1% from $396.1 million in the prior year. The growth was driven by strong performances in the Branded Products and Healthcare Apparel segments, which saw increases of 10.8% and 11.4%, respectively.

Profitability metrics also improved significantly. Income before income tax expense for the third quarter was $6.6 million, a 100.8% increase from $3.3 million in 2023. For the nine months, this figure rose to $11.8 million, up 111.2% from $5.6 million. Net income for the third quarter was $5.4 million, compared to $3.1 million in the previous year, while for the nine months, net income increased to $9.9 million from $5.2 million. Basic net income per share for the third quarter was $0.34, up from $0.19, and for the nine months, it rose to $0.62 from $0.33.

The company’s gross margin improved to 40.4% in the third quarter, up from 39.1% in 2023, attributed to better sourcing and pricing strategies in the Branded Products and Healthcare Apparel segments. However, the Contact Centers segment experienced a slight decline in gross margin due to increased employee-related costs.

Total selling and administrative expenses increased to $149.3 million for the nine months, up 11.4% from $134.0 million in 2023, reflecting higher employee costs and marketing expenditures. Interest expense decreased to $4.9 million for the nine months, down from $7.7 million, due to reduced borrowings and lower interest rates.

As of September 30, 2024, the company had total assets of $407.4 million and total liabilities of $207.8 million, resulting in total shareholders’ equity of $199.5 million. Cash and cash equivalents decreased slightly to $18.4 million from $19.9 million at the end of 2023.

Strategically, the company settled a contingent consideration obligation related to the acquisition of Sutter’s Mill Specialties, Inc. for $0.5 million in July 2023. Additionally, a new stock repurchase plan was approved in August 2024, allowing for the repurchase of up to $10 million of common stock over the next year. The company continues to address a material weakness in internal control over financial reporting, particularly in the Contact Centers segment, and has implemented remediation efforts.