SGC Q2 2025 Earnings Call Transcript

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DATE

Tuesday, Aug. 5, 2025 astatine 5 p.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Michael L. Benstock

• Chief Financial Officer — Michael W. Koempel

• President, Branded Products — Jake Himelstein

Full Conference Call Transcript

Michael L. Benstock: Thank you, operator. We admit everyone joining america today. I'll commencement with an overview of existent marketplace conditions, and past I'll reappraisal our consolidated fiscal highlights for the quarter, on with a treatment astir our 3 concern segments. I'll past manus it implicit to Mike to instrumentality america done a much elaborate reappraisal of our fiscal results. After that, Mike and Jake Himelstein, President of our Branded Products business, and I volition beryllium blessed to instrumentality your questions. We've seen humble betterment successful the economic-related lawsuit hesitancy that I spoke astir connected our past call.

While galore customers inactive await amended certainty astir inflation, involvement rates and tariffs, our Branded Products segment, successful particular, has successfully managed the economical ambiguity by taking marketplace share, negotiating outgo alleviation with vendors and leveraging a divers proviso basal successful bid to supply our customers and prospects with a compelling value. However, the administration's policies tin occasionally beryllium to the detriment of a peculiar conception of the economy, an illustration being 1 of our larger telephone halfway customers successful the star concern that filed Chapter 11 during the 2nd quarter. This was the past of our customers benefiting from important authorities subsidies.

And I'll stock successful a moment, our interaction halfway pipeline is full, suggesting these customers volition beryllium replaced. Our diverseness crossed our 3 concern units and the antithetic industries successful which we run plays to our competitory vantage and acts arsenic a important cushion successful the look of macro uncertainty. During this fluid play of some tariffs and duties, we derived a akin payment connected the outgo broadside of the equation arsenic our diverseness of sourcing has agelong been a priority.

This involves strategically positioning our sourcing successful aggregate countries crossed the satellite based connected a redundant sourcing strategy, leveraging our ain factories successful Haiti, taking a multipronged attack to vendor negotiations and moving with our customers to see alternate merchandise categories -- successful essence, this real-time flexibility has served america good implicit the years, and SGC volition stay nimble arsenic planetary commercialized negotiations proceed to evolve. Regardless of macro conditions, we stay hyper-focused connected disbursal management. As we mentioned connected our past call, we launched our inaugural to trim budgeted expenses during the 2nd quarter, and we are seeing the payment of those outgo reductions, which has and volition proceed to presumption america for stronger profitability.