Superior Group of Companies Q3 2026: Revenue Beats, EPS Misses as Healthcare Apparel Swings to a Loss

Superior Group of Companies posted net sales of $145.99 million for the third quarter of 2026, up 5.4% year over year and beating expectations. Adjusted EPS came in at $0.17, missing expectations, as profitability was squeezed by the company's struggling Healthcare Apparel segment.

Healthcare Apparel is at the center of the miss. The segment swung to an adjusted EBITDA loss of $501,000, compared with a profit of $3.18 million in the same quarter a year earlier, as new leadership dismantles the existing product mix in pursuit of a tighter, more margin-friendly assortment. CEO Michael Benstock described the shift as deliberate: 'New leadership in Healthcare Apparel continues to execute toward a more focused product strategy to improve margins and reduce working capital requirements in the quarters ahead.'

The other two segments picked up the slack on the top line. Branded Products grew net sales to $92.11 million from $85.09 million a year ago, with segment adjusted EBITDA climbing to $9.8 million from $7.5 million. Contact Centers added to the momentum, with net sales of $24.22 million versus $22.7 million and segment adjusted EBITDA rising to $2.9 million from $2.4 million.

The balance sheet showed meaningful improvement over the nine-month period. Operating cash flow surged to $30.68 million from just $1.27 million through the same stretch a year earlier, and long-term debt fell to $74.29 million. Cash and equivalents rose 67.7% year over year to $27.92 million, giving the company room to pursue moves like its recent acquisition of Select VoiceCom.

Management tightened its full-year 2026 outlook on both the top and bottom lines. The adjusted EPS range was narrowed to $0.60 to $0.66 (from $0.54 to $0.66), and the net sales forecast was refined to $578.0 million to $585.0 million (from $572.0 million to $585.0 million). Both ranges represent growth versus 2025 full-year results, and the company says the high end of the EPS range would represent 43% growth over the prior year. The key variable heading into Q4 is whether the Healthcare Apparel reset progresses quickly enough to stop dragging consolidated margins.