BAMKO (asi/131431) got the better of 2020.

With COVID-19 making last year the most challenging the promotional products industry has ever faced, the Los Angeles-based Top 40 distributor increased year-over-year total global annual sales to about $202.2 million, according to financial data released Monday, March 1, by parent firm Superior Group of Companies. Of that total, BAMKO generated $193.9 million in revenue in North America, a 78% increase over reported 2019 North American promo revenue of $108.6 million.

Jake Himelstein, BAMKO

Industry-wide, promo distributors sales decreased, on average, by 19.8% in 2020.

BAMKO propelled the strong performance, in significant part, through an early and successful pivot to selling personal protective equipment (PPE).

“Our culture of entrepreneurship helped us see the opportunity for PPE in front of us and made it clear that we had to capitalize on it,” Jake Himelstein, BAMKO’s chief financial officer/chief operating officer, told ASI Media. “Having our own sourcing operation with boots on the ground across Asia, Central America and South America afforded us access to direct production sources and allowed us to pivot out of China as soon as PPE sourcing there ran into regulatory hurdles in the second quarter.”

BAMKO’s 2020 was about more than PPE sales. Superior Group CEO Michael Benstock noted that BAMKO achieved organic net sales growth in 2020, exclusive of PPE business.

Investments in technology and warehousing/distribution that BAMKO had made in recent years were essential to empowering the distributorship to adapt to changes in the marketplace and society, such as the new work-from-home norm and the need to be able to carry certain levels of inventory and quickly deliver it, executives said.

Himelstein told ASI Media that BAMKO is aiming for 12% organic growth in promotional product sales in 2021. “We see more opportunities than ever before for at-home gifting, employee retention and virtual conferences,” he said. “There’s a massive need to engage with employees in a meaningful way in a remote work environment that will continue on in some substantial form for many years to come.”

To help capitalize on gifting opportunities, BAMKO in February announced the acquisition of Gifts By Design, a Seattle-based promo distributor known for providing corporate awards, incentives and recognition programs for household name brands. Gifts By Design’s revenue was $18.2 million in 2020.

Top 40 #promoproducts distributor @BAMKO has acquired Gifts By Design, an $18 million distributor that specializes in awards, incentives and more. Details on the big deal here. https://t.co/FxNVRtwS7P @Tim_Andrews_ASI @asicentral @ASI_MBell

— Chris Ruvo (@ChrisR_ASI) February 1, 2021

Given the continued marketplace disruption from the coronavirus pandemic, Himelstein opined that in 2021 and beyond in promo, “the strong will survive and will be better for it. Those companies that invest heavily in technology, warehousing, overseas sourcing and other key long-term infrastructure will be in very good shape in the coming years.”

Currently, BAMKO ranks 19th on Counselor’s list of the largest distributors in the promotional products industry. The 2020 performance puts the firm in position to threaten for a top 10 spot on the 2021 list, which is due out this summer.

Superior Group revealed BAMKO’s performance as part of the company’s total financial results.

For full-year 2020, Superior increased net sales by $150 million, or 40%, to $526.7 million. That figure includes BAMKO’s sales and revenue from Superior’s other divisions.

In 2020, Superior Group’s pre-tax income was $51.5 million, compared to $15.3 million the year prior. Net income for 2020 was $41 million, or $2.65 per diluted share, compared to $12.1 million, or $0.79 per diluted share in 2019.

Net sales for the fourth quarter of 2020 were $145.4 million, an increase of 34% over the previous year’s Q4. Pre-tax income was $15.9 million compared to $4 million in 2019’s fourth quarter. Net income for 2020’s Q4 was $12.5 million, or $0.79 per diluted share, compared to $3 million, or $0.20 per diluted share.