SGC Stock Forecast & Price Target

The positive outlook for Superior Group of Companies Inc. is supported by a full-year 2024 EBITDA increase of 1.8% year-over-year alongside robust revenue growth in both the Healthcare Apparel and Contact Centers segments, which reported increases of 8.3% and 5.4% respectively in Q4/24. Furthermore, the company’s revenue guidance for 2025 estimates between $585 million and $595 million, indicating a growth of 3.4% to 5.2% year-over-year, consistent with positive employment trends in key sectors like healthcare and food service. This favorable economic backdrop enhances the potential for continued demand for the company's products, particularly through its direct-to-consumer brand, Wink, in a competitive market.

The analysis indicates a negative outlook for Superior Group of Companies Inc., primarily driven by a significant decline in Q4/24 EBITDA, which fell 26.7% year-over-year to $7.3 million, notably underperforming both company estimates and consensus projections. This downturn is attributed to a 5.4% decrease in revenue from the Branded Products segment, which constitutes 64% of total revenue, exacerbated by unfavorable product sourcing and timing issues in customer uniform program rollouts. Additionally, the overall revenue decline of 1.2% year-over-year, combined with lower earnings per share and a more than 5% reduction in the healthcare apparel segment, highlights ongoing challenges in both the branded and healthcare apparel markets.