Keegan Tierney Cox's questions to SUPERIOR GROUP OF COMPANIES (SGC) leadership • Q4 2024
Question
Keegan Tierney Cox asked for clarification on the Branded Products segment's performance, specifically whether the cycling of Branded Uniforms involved customer loss, and questioned if the high-margin Contact Centers business was experiencing any labor cost increases.
Answer
Executive Michael Koempel clarified that the Branded Products segment did not lose any customers; the year-over-year decline was due to the timing of a large uniform program rollout that occurred in Q4 2023 but is scheduled for 2025 this cycle. Executive Michael Benstock stated that Contact Center labor costs have been stable since price increases a year ago made them competitive. Michael Koempel added that the segment's gross margin of 54.7% was strong and consistent with the prior quarter.