Counselor Top 40 distributor BAMKO’s (asi/131431) sales dropped in Q1 2025, decreasing 0.68% compared to the same quarter the prior year, according to a just-released financial report from its publicly traded parent firm, Superior Group of Companies (SGC).

BAMKO’s $86.5 million in Q1 sales came as the Los Angeles-headquartered Counselor Best Place to Work shared that earnings before interest, taxes, depreciation and amortization (EBITDA) during the three-month span decreased 42% year over year to about $5.75 million.

Jake Himelstein, BAMKO’s president and a member of Counselor’s Power 50 list of promo’s most influential people, said a decline in branded uniform business played a role in BAMKO’s sales not growing compared to the prior year. Large one-time rollouts in branded uniforms in Q1 2024 did not recur in 2025 and thus made for a tough year-over-year comparative, Himelstein said.

“We are seeing some hesitancy from customers on moving forward with large programs,” he further shared. “On top of the uncertainty around inflation and interest rates, tariffs have slowed customer decision-making and made sourcing of our products more challenging.”

“As we emerge from the tariff environment, we expect strong sales as we continue to recruit new sales reps, win new accounts and expand wallet share with our existing base.” Jake Himelstein, BAMKO (asi/131431)

Industrywide, promotional products distributors and suppliers reported sharp sales declines and steep drops in business confidence in the first quarter, due in significant part to marketplace volatility spawned by sweeping new import tariffs announced or implemented by President Donald Trump’s administration, according to the Distributor Quarterly Sales Survey from ASI Research.

Distributors’ collective sales dropped by 3.6% in the quarter compared to Q1 2024. Meanwhile, suppliers saw collective sales retreat, on average, by 4.8% in Q1 2025. The United States’ gross domestic product was down 0.3% in the first quarter of the year compared to the same quarter in 2024.

New ASI Research delivers industrywide findings on Q1 #promoproduct distributor & supplier sales, as well as questions related to Made-in-USA demand, product price increases, business outlook, top end-markets for sales & how firms of different sizes fared https://t.co/s6FUOLXl4C

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Despite that backdrop, Himelstein said there are positives in play for BAMKO. The firm’s sourcing strategy has put it in a position where it can produce/source most of the goods it provides customers from outside China – an advantage, Himelstein said, at a time when the import tariff rates on that nation are by far the heaviest placed on any country by the White House.

“Also, our pipeline of business opportunities is setting new records, our order backlog remains strong and our customer retention has been excellent,” Himelstein said. “As we emerge from the tariff environment, we expect strong sales as we continue to recruit new sales reps, win new accounts and expand wallet share with our existing base.”

SGC’s other business divisions include healthcare apparel and contact centers. The Florida-based firm’s net sales across its entire business dropped 1.26% year over year in Q1 2025 to about $137.1 million.

SGC posted a net loss of $758,000 for the quarter, which translated to a loss of $0.05 per share for shareholders. The company said it’s lowering its revenue guidance for the year from a range of $585 million to $595 million to $550 million to $575 million “given the heightened macro uncertainty” in the marketplace.

“We are leveraging our experience, abilities and resources to proactively reduce expenses without hampering our ability to ramp as conditions improve,” said SGC CEO Michael Benstock. “Our balance sheet remains strong and affords us the ability to manage through the current economic headwinds.”

Based on reported 2023 North American promotional products sales of $342.7 million, BAMKO ranked eighth on Counselor’s list of the largest distributors in the industry. The firm reported full-year 2024 revenue of $366 million to Counselor, which will release the new Top 40 rankings this summer.