Top 40 distributor BAMKO’s (asi/131431) second quarter 2019 sales tallied $23.7 million, a nearly 25% increase over the same quarter the prior year. That’s according to Q2 financial data that BAMKO’s parent firm, Seminole, FL-based Superior Group of Companies, released early Tuesday. “We continue to see strong growth at BAMKO,” said Superior CEO Michael Benstock.

Michael Benstock, Superior Group of Companies

BAMKO’s second quarter performance followed a first quarter in which the Los Angeles-based firm generated sales of $20.4 million, a 9% rise over the first quarter of 2018. BAMKO ranked 21^st on Counselor’s just-released list of the largest distributors in the promotional products industry based on reported 2018 North American ad specialty revenue of $86.5 million.

Despite BAMKO’s success, Superior’s total company net income for the three-month period ended June 30 was down 27% to $2.8 million, or $0.18 earnings per diluted share. EPDS was $0.25 in the second quarter last year. The earnings decline occurred despite a 12% year-on-year rise in Superior’s company-wide sales, which were $92.27 million in the second quarter.

Superior has previously indicated that lower earnings, which also occurred in 2019’s first quarter, are a result, in part, of increased costs related to products sold and selling/administrative expenses. Rising pension costs and accelerating interest expenses have also dragged on Superior’s earnings.

In a statement, Benstock indicated that Superior is making progress on investments that will improve the business in the long run, including the building of a manufacturing facility in Haiti.

“We’re currently investing in our companies and making the organizational changes necessary to support our current business and prepare for our next level of growth, all while realizing increased sales for our 27th consecutive quarter,” Benstock said in a statement. “We’re making good progress on the integration of our uniform businesses enabling operational efficiencies, improved resource alignment, product sourcing, and sales channels. Technology upgrades are moving forward in our distribution centers in Arkansas and Texas, and construction continues on our second manufacturing facility in Haiti. Our investments in these initiatives are designed to generate cost efficiencies, improve working capital usage, and better serve the needs of our customers.”

For the first six months of 2019, Superior’s overall sales were $178.82 million, up from $155.47 million. Net income was down from 2018’s half-year of $6.26 million, or $0.40 per diluted share, to $5.15 million, or $0.34 per diluted share, in 2019.

Established in 1920, Superior Group is a combination of companies. Its promotional products division includes BAMKO, former 40 Top distributor Tangerine Promotions (which BAMKO acquired in 2017), and Public Identity. Superior’s other business divisions focus on uniforms and call/contact center support.