Florida-based Superior Uniform Group Inc. (asi/339857), whose holdings include distributor BAMKO (asi/131431), announced that its promotional products revenue was up 109% in the first quarter, thanks largely to two acquisitions in 2017. Profit in that segment was down, however, with the firm reporting a pretax loss of $0.6 million for Q1, compared with a pretax income gain of $0.4 million in the same period of 2017.

CEO Michael Benstock attributed the income loss in the promotional products segment to the way annual sales tend to shake out at Tangerine Promotions, which was acquired by BAMKO in December. “Tangerine generally reports lower sales in the first and fourth quarter each year, with a more significant portion of their annual sales volume coming in the second and third quarters,” Benstock said. “We’re still in the early stages of integrating this recent acquisition, and we still expect the results from this acquisition to be accretive for the full year of 2018.”

Superior Uniform Group Inc. CEO Michael Benstock

The figures released in the promotional products segment tracked with Superior’s overall Q1 numbers, where revenues were up, but profits dragged. Net sales for the first quarter of 2018 were up 19.8%, rising to $73.1 million, compared with $61 million in the same quarter last year. It was the 22nd consecutive quarter where sales increased. Net income, however, was down 34.2% in Q1, dropping to $2.5 million, compared with $3.8 million in the same quarter in 2017. Superior’s net income included a $1 million pretax gain related to the sale of its former call center building in San Salvador. Earnings per diluted share for Q1 dropped to $0.16, compared with $0.26 for the same quarter last year.

“Our results for the first quarter were mixed across our various segments,” Benstock said. He noted that Superior was making “solid progress” on integrating its acquisitions in the promotional products segment and that the company was “leveraging our shared services model as well as capitalizing on cross-selling opportunities across our business.”

In recent years, Superior has raised its profile in the promo products market, as BAMKO has sought aggressive expansion through acquisitions. In December 2017, BAMKO purchased Top 40 distributor Tangerine Promotions (asi/341609), and in August 2017, the firm bought branded merchandise firm Public Identity.