(Editor’s Note: PromoWire by PPAI Media is a running digest of updates submitted from organizations around the promotional products industry. PPAI Media will consider newsworthy entries from any member organization.)

August 10

Gemline Expands Representation Of Cuisinart Branded Products

Gemline (PPAI 113948, S11) has added Cuisinart small appliances and housewares to its rapidly expanding product lineup. The introduction encompasses all appliances and household essentials such as wine openers, ice cream makers, blenders, coffee grinders and more.

  • Cuisinart, a universally recognized name, is a full-service culinary resource with a wide array of products that are preferred by chefs and favored by consumers.
  • Gemline added Cuisinart Outdoor grilling products to its portfolio in July 2021.

“We are thrilled to introduce the Cuisinart Appliance Collection to Gemline’s growing product portfolio. This partnership is a testament to our ongoing commitment to providing our distributor partners with remarkable and purposeful products that elevate their gifting experiences, and just in time for holiday gifting,” says Frank Carpenito, president & CEO of Gemline.

August 9

iPROMOTEu’s Affiliate Forum Draws Elite Group To Boston

iPROMOTEu (PPAI 218870, D12) hosted its 2023 Affiliate Forum July 12-14 in Boston, Massachusetts, bringing together 250 affiliates, staff and industry suppliers for three days of networking, education and a trade show. The biennial event is exclusively for top-producing iPROMOTEu affiliates and preferred vendors.

  • Participants attended educational sessions with the iPROMOTEu staff, end-client panelists and industry experts including Tim Andrews, ASI president and CEO; Kevin Walsh, PPAI board chair and president of Showdown Displays; and Dale Denham, PPAI president and CEO. In addition, iPROMOTEu President and CEO Ross Silverstein and the executive leadership team hosted a live town hall meeting.
  • On the second day, affiliates viewed products and met with top industry suppliers at a trade show. Social events were also held at several of Boston’s iconic landmarks including Killian Court at MIT, a reception and dinner at the Harvard Club of Boston, and an evening at the John F. Kennedy Presidential Library and Museum.

“The iPROMOTEu Affiliate Forum uniquely brings together an elite group to discuss current happenings in the promotional products industry, share ideas and shape the future,” says Lori Bauer, senior vice president of affiliate sales and support. “We are proud to host an event that connects the most successful and influential professionals in the industry and are confident that this year’s Affiliate Forum will result in positive impacts for all our affiliates and vendor partners.”

August 8

Gold Bond Collaborates With Cap America On New Product Line

Gold Bond (PPAI 113974, S10) announces a collaboration with customized cap supplier Cap America to deliver an expanded range of premium goods to meet the evolving needs of customers in the promo industry.

“This collaboration serves as a seamless extension of our award-winning golf line,” says Mark Godsey, president at Gold Bond. “Renowned for their quality, Cap America's exceptional hats are widely embraced on the golf course, perfectly complementing our existing portfolio of leading golf brands. The customizable options they offer also make them an excellent addition to our other four lanes of authority: penmanship, carry, promo essentials and hydration.”

  • The cooperative effort opens up new avenues for both companies to better serve their new and existing customers, but brings no changes to existing client accounts with either company.
  • Family owned and operated Cap America has been providing quality headwear since 1985.

 August 7

Superior Group Reports Q2 Results; Revises Year-End Outlook

Superior Group of Companies, which operates in the promo industry through distributors BAMKO, Sutter’s Mill Specialties, Tangerine Promotions, Public Identity and Gifts by Design, reports that net sales decreased 12.7 percent to $129.2 million in the second quarter ended June 30, 2023, compared to second quarter 2022 net sales of $147.9 million.

  • Pretax income was $1.4 million compared to a pretax loss of $29 million in the second quarter of 2022.
  • Net income was $1.2 million compared to a net loss of $26.7 million, or $1.70 per diluted share for the second quarter of 2022.
  • In the second quarter of 2022, the company recognized pre-tax, non-cash impairment charges related to goodwill of $24.5 million and tradenames of $5.6 million.
  • For full-year 2023, the company is updating its outlook to include a sales forecast of $550 million to $560 million compared to $579 million in 2022, and an earnings per share forecast of $.45 to $.55 compared to $.62 of adjusted earnings per share in 2022.

“During these uncertain economic times, we delivered on our commitment to drive positive free cash flow, reduce debt and improve our leverage position, all while strategically investing to capture market share in the quarters ahead,” says CEO Michael Benstock. “As we indicated in May, we remain poised to generate even stronger results in the second half of the year, and the steps we’re taking now will clearly benefit our growth and profitability once macro conditions and economic visibility normalize.”

August 3

Activewear Sales Drive Gildan’s Second-Quarter Results

Gildan Activewear (PPAI 250187, S13) credits better-than-expected sales in activewear for net sales of $840 million in the second quarter of 2023, which ended July 2. Results were above expectations but reflected a 6% decline over a record quarter last year.

  • Activewear generated sales of $692 million, down 9% compared to the same period last year which had benefited from distributor inventory replenishment following destocking which occurred during the pandemic and a tight manufacturing environment in 2021.
  • The company’s operating margin came in at 21.7 percent and reflected a net insurance gain of $74 million, partly offset by restructuring charges of $30 million.
  • The second quarter of 2023 had net debt of $1,170 million and a leverage ratio of 1.8 times net debt to trailing 12 months adjusted EBITDA within targeted debt levels.
  • In line with its capital allocation priorities and commitment to return capital to shareholders, the share buyback program resulted in repurchasing approximately 2.6 million shares at a cost of $78 million.

“We are pleased with our top line performance which came in ahead of our expectations for the quarter, up against a strong comparative period,” says President and CEO Glenn J. Chamandy. “Further, in a challenging macro environment, we are driving market share gains given our strong competitive position and continued execution on our GSG strategy.”

Delta Apparel Announces 2023 Third-Quarter Financials

Delta Apparel (PPAI 188431, S9) has released financial results for its 2023 third quarter ending July 1.

  • Net sales were $106.3 million compared to prior year third quarter net sales of $126.9 million. Salt Life Group segment net sales were $17.2 million compared to prior year third quarter net sales of $20.9 million, with the year-over-year comparison skewed by significant sales occurring in the prior year third quarter due to transportation delays. Net sales in the Delta Group segment were $89.1 million compared to $106 million in the prior year third quarter.
  • Gross margins were 13.1% compared to 24.2% in the prior year period.
  • Operating income declined year-over-year from $9.3 million, or 7.3% of sales, to an operating loss of $4.5 million, or 4.2% of sales.
  • Net income declined from $6.2 million, or $.88 per diluted share, to a loss of $6.3 million, or $0.90 per diluted share.
  • For fiscal year 2024, net sales are anticipated in the range of $410 to $425 million generating operating profit margins of 3.25% to 4.25%.

“We saw encouraging indications throughout the quarter that the two major trends impacting both our business and the entire industry this year – elevated cotton pricing and demand destruction from high inventory levels in the retail supply chain – are receding and we are moving into a more normalized operating environment,” says Chairman and CEO Robert W. Humphreys. “I’m extremely proud of the way our team has navigated these broad-based events and executed on strategies to counteract them, including significant reductions in inventory and debt as well as several needle-moving cost restructuring initiatives.”
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