UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549





FORM l0-Q





(Mark One)

|x | QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ---------------------------------------------------------------------------------------

For the quarterly period ended June 30, 2010

OR



| ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ----------------------------------------------------------------------------------------

Commission file number 001-05869





SUPERIOR
UNIFORM GROUP, INC.







|                       |  |                            
|---------------------- |  | ---------------------------
|Incorporated - Florida |  | Employer Identification No.
|                       |  | 11-1385670                 

10055
Seminole Boulevard

Seminole, Florida 33772-2539

Telephone No.: 727-397-9611





Indicate by check mark whether
the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No   ̈

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every
Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such
files).    Yes   ̈    No   ̈

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.
See the definitions of "large accelerated filer, "accelerated filer" and smaller reporting company in Rule 12b-2 of the Exchange Act. (Check one)



|                        |  |                                                  |  |                           |  |  
|----------------------- |  | ------------------------------------------------ |  | ------------------------- |  | -
|Large accelerated filer |  |  ̈                                                |  | Accelerated filer         |  |  ̈
|                        |  |                                                  | 
|Non-accelerated filer   |  |  ̈  (Do not check if a smaller reporting company) |  | Smaller Reporting Company |  | x

Indicate by check mark whether the Company is a shell company (as defined in Rule 12b-2 of the Exchange
Act).    Yes   ̈    No  x

As of July 20, 2010, the Registrant had 5,900,245 common shares outstanding, which is the registrant's only

class of common stock.









---

PART I - FINANCIAL INFORMATION



|ITEM 1. | Financial Statements
|------- | --------------------

SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

THREE MONTHS ENDED JUNE 30,

(Unaudited)



|                                                                |  |           |  |      |            |      |   |           
|--------------------------------------------------------------- |  | --------- |  | ---- | ---------- | ---- | - | ----------
|                                                                |  |           |  | 2010 |            | 2009
|                                                                |  |           | 
|Net sales                                                       |  |           |  | $    | 26,629,161 |      | $ | 24,971,523
|                                                                |  |           |  |      |            |      |   |           
|                                                                |  |           | 
|Costs and expenses:                                             |  |           |  |      |            |      |   |           
|Cost of goods sold                                              |  |           |  |      | 17,245,178 |      |   | 16,689,786
|Selling and administrative expenses                             |  |           |  |      | 7,845,209  |      |   | 7,235,529 
|Interest expense                                                |  |           |  |      | 5,604      |      |   | 24,936    
|                                                                |  |           |  |      |            |      |   |           
|                                                                |  |           |  |      | 25,095,991 |      |   | 23,950,251
|                                                                |  |           |  |      |            |      |   |           
|                                                                |  |           | 
|Earnings before taxes on income                                 |  |           |  |      | 1,533,170  |      |   | 1,021,272 
|Income tax expense                                              |  |           |  |      | 550,000    |      |   | 320,000   
|                                                                |  |           |  |      |            |      |   |           
|                                                                |  |           | 
|Net earnings                                                    |  |           |  | $    | 983,170    |      | $ | 701,272   
|                                                                |  |           |  |      |            |      |   |           
|                                                                |  |           | 
|Weighted average number of shares outstanding during the period |  | (Basic)   |  |      | 5,901,723  |      |   | 6,029,936 
|                                                                |  | (Diluted) |  |      | 5,957,641  |      |   | 6,029,936 
|Per Share Data:                                                 |  |           |  |      |            |      |   |           
|Basic                                                           |  |           |  |      |            |      |   |           
|Net earnings                                                    |  |           |  | $    | 0.17       |      | $ | 0.12      
|                                                                |  |           |  |      |            |      |   |           
|                                                                |  |           | 
|Diluted                                                         |  |           |  |      |            |      |   |           
|Net earnings                                                    |  |           |  | $    | 0.17       |      | $ | 0.12      
|                                                                |  |           |  |      |            |      |   |           
|                                                                |  |           | 
|Cash dividends per common share                                 |  |           |  | $    | 0.135      |      | $ | 0.135     
|                                                                |  |           |  |      |            |      |   |           

See accompanying notes to condensed consolidated interim financial
statements.



2



---

SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

SIX MONTHS ENDED JUNE 30,

(Continued)

(Unaudited)



|                                                                |  |          |   |  |      |            |      |   |           
|--------------------------------------------------------------- |  | -------- | - |  | ---- | ---------- | ---- | - | ----------
|                                                                |  |          |   |  | 2010 |            | 2009
|                                                                |  |          |  
|Net sales                                                       |  |          |   |  | $    | 52,609,023 |      | $ | 48,687,617
|                                                                |  |          |   |  |      |            |      |   |           
|                                                                |  |          |  
|Costs and expenses:                                             |  |          |   |  |      |            |      |   |           
|Cost of goods sold                                              |  |          |   |  |      | 34,293,552 |      |   | 32,998,920
|Selling and administrative expenses                             |  |          |   |  |      | 15,966,006 |      |   | 15,305,657
|Interest expense                                                |  |          |   |  |      | 8,078      |      |   | 64,713    
|                                                                |  |          |   |  |      |            |      |   |           
|                                                                |  |          |   |  |      | 50,267,636 |      |   | 48,369,290
|                                                                |  |          |   |  |      |            |      |   |           
|                                                                |  |          |  
|Earnings before taxes on income                                 |  |          |   |  |      | 2,341,387  |      |   | 318,327   
|Income tax expense                                              |  |          |   |  |      | 850,000    |      |   | 120,000   
|                                                                |  |          |   |  |      |            |      |   |           
|                                                                |  |          |  
|Net earnings                                                    |  |          |   |  | $    | 1,491,387  |      | $ | 198,327   
|                                                                |  |          |   |  |      |            |      |   |           
|                                                                |  |          |  
|Weighted average number of shares outstanding during the period |  | (Basic   | ) |  |      | 5,904,889  |      |   | 6,039,559 
|                                                                |  | (Diluted | ) |  |      | 5,958,825  |      |   | 6,039,559 
|Per Share Data:                                                 |  |          |   |  |      |            |      |   |           
|Basic                                                           |  |          |   |  |      |            |      |   |           
|Net earnings                                                    |  |          |   |  | $    | 0.25       |      | $ | 0.03      
|                                                                |  |          |   |  |      |            |      |   |           
|                                                                |  |          |  
|Diluted                                                         |  |          |   |  |      |            |      |   |           
|Net earnings                                                    |  |          |   |  | $    | 0.25       |      | $ | 0.03      
|                                                                |  |          |   |  |      |            |      |   |           
|                                                                |  |          |  
|Cash dividends per common share                                 |  |          |   |  | $    | 0.27       |      | $ | 0.27      
|                                                                |  |          |   |  |      |            |      |   |           

See accompanying notes to condensed consolidated interim financial
statements.



3



---

SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS



|                                                                                                                                     |  |                         |            |   |                     |   |            |  
|------------------------------------------------------------------------------------------------------------------------------------ |  | ----------------------- | ---------- | - | ------------------- | - | ---------- | -
|                                                                                                                                     |  | June
30,2010(Unaudited) |            |   | December 31,2009(1) |  
|ASSETS                                                                                                                               |  |                         |            |   |                     |   |            |  
|                                                                                                                                     |  |                        
|CURRENT ASSETS:                                                                                                                      |  |                         |            |   |                     |   |            |  
|Cash and cash equivalents                                                                                                            |  | $                       | 7,157,084  |   |                     | $ | 6,365,557  |  
|Accounts receivable and other current assets                                                                                         |  |                         | 20,798,608 |   |                     |   | 20,708,963 |  
|Inventories*                                                                                                                         |  |                         | 31,866,207 |   |                     |   | 32,053,504 |  
|                                                                                                                                     |  |                         |            |   |                     |   |            |  
|                                                                                                                                     |  |                        
|TOTAL CURRENT ASSETS                                                                                                                 |  |                         | 59,821,899 |   |                     |   | 59,128,024 |  
|                                                                                                                                     |  |                        
|PROPERTY, PLANT AND EQUIPMENT, NET                                                                                                   |  |                         | 10,528,435 |   |                     |   | 10,868,296 |  
|OTHER INTANGIBLE ASSETS, NET                                                                                                         |  |                         | 1,103,541  |   |                     |   | 1,295,859  |  
|DEFERRED INCOME TAXES                                                                                                                |  |                         | 2,340,000  |   |                     |   | 2,060,000  |  
|OTHER ASSETS                                                                                                                         |  |                         | 207,239    |   |                     |   | 215,684    |  
|                                                                                                                                     |  |                         |            |   |                     |   |            |  
|                                                                                                                                     |  | $                       | 74,001,114 |   |                     | $ | 73,567,863 |  
|                                                                                                                                     |  |                         |            |   |                     |   |            |  
|                                                                                                                                     |  |                        
|LIABILITIES AND SHAREHOLDERS EQUITY                                                                                                 |  |                         |            |   |                     |   |            |  
|                                                                                                                                     |  |                        
|CURRENT LIABILITIES:                                                                                                                 |  |                         |            |   |                     |   |            |  
|Accounts payable                                                                                                                     |  | $                       | 5,629,374  |   |                     | $ | 5,426,433  |  
|Other current liabilities                                                                                                            |  |                         | 2,280,582  |   |                     |   | 2,226,653  |  
|                                                                                                                                     |  |                         |            |   |                     |   |            |  
|                                                                                                                                     |  |                        
|TOTAL CURRENT LIABILITIES                                                                                                            |  |                         | 7,909,956  |   |                     |   | 7,653,086  |  
|                                                                                                                                     |  |                        
|LONG-TERM PENSION LIABILITY                                                                                                          |  |                         | 4,941,550  |   |                     |   | 5,115,817  |  
|OTHER LONG-TERM LIABILITIES                                                                                                          |  |                         | 735,000    |   |                     |   | 680,000    |  
|SHAREHOLDERS EQUITY:                                                                                                                |  |                         |            |   |                     |   |            |  
|Preferred stock, $1 par value - authorized 300,000 shares (none issued)                                                              |  |                         |           |   |                     |   |           |  
|Common stock, $.001 par value - authorized 50,000,000 shares, issued and outstanding - 5,901,341 and 5,915,978 shares,
respectively. |  |                         | 5,901      |   |                     |   | 5,915      |  
|Additional paid-in capital                                                                                                           |  |                         | 15,882,982 |   |                     |   | 15,436,945 |  
|Retained earnings                                                                                                                    |  |                         | 48,183,461 |   |                     |   | 48,483,697 |  
|Accumulated other comprehensive loss, net of tax:                                                                                    |  |                         |            |   |                     |   |            |  
|Pensions                                                                                                                             |  |                         | (3,657,736 | ) |                     |   | (3,807,597 | )
|                                                                                                                                     |  |                         |            |   |                     |   |            |  
|TOTAL SHAREHOLDERS EQUITY                                                                                                           |  |                         | 60,414,608 |   |                     |   | 60,118,960 |  
|                                                                                                                                     |  |                         |            |   |                     |   |            |  
|                                                                                                                                     |  | $                       | 74,001,114 |   |                     | $ | 73,567,863 |  
|                                                                                                                                     |  |                         |            |   |                     |   |            |  
|* Inventories consist of the following:                                                                                              |  |                         |            |   |                     |   |            |  
|                                                                                                                                     |  | June 30,2010(Unaudited) |            |   | December 31,2009    |  
|Finished goods                                                                                                                       |  | $                       | 24,530,683 |   |                     | $ | 24,770,636 |  
|Work in process                                                                                                                      |  |                         | 91,447     |   |                     |   | 169,961    |  
|Raw materials                                                                                                                        |  |                         | 7,244,077  |   |                     |   | 7,112,907  |  
|                                                                                                                                     |  |                         |            |   |                     |   |            |  
|                                                                                                                                     |  | $                       | 31,866,207 |   |                     | $ | 32,053,504 |  
|                                                                                                                                     |  |                         |            |   |                     |   |            |  



|(1) | The balance sheet as of December 31, 2009 has been derived from the audited balance sheet as of that date and has been condensed.
|--- | ---------------------------------------------------------------------------------------------------------------------------------

See accompanying notes to condensed consolidated interim financial statements.



4



---

SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED JUNE 30,

(Unaudited)



|                                                                                      |  |      |            |   |      |   |             |  
|------------------------------------------------------------------------------------- |  | ---- | ---------- | - | ---- | - | ----------- | -
|                                                                                      |  | 2010 |            |   | 2009 |  
|CASH FLOWS FROM OPERATING ACTIVITIES                                                  |  |      |            |   |      |   |             |  
|Net earnings                                                                          |  | $    | 1,491,387  |   |      | $ | 198,327     |  
|Adjustments to reconcile net earnings to net cash provided from operating activities: |  |      |            |   |      |   |             |  
|Depreciation and amortization                                                         |  |      | 1,317,664  |   |      |   | 1,497,219   |  
|Provision for bad debts                                                               |  |      | 111,900    |   |      |   | 62,950      |  
|Share-based compensation expense                                                      |  |      | 408,834    |   |      |   | 190,886     |  
|Deferred income tax benefit                                                           |  |      | (360,500   | ) |      |   | (532,500    | )
|Gain on sales of property, plant and equipment                                        |  |      | (45,437    | ) |      |   | (136,786    | )
|Changes in assets and liabilities:                                                    |  |      |            |   |      |   |             |  
|Accounts receivable and other current assets                                          |  |      | (200,877   | ) |      |   | 1,585,140   |  
|Inventories                                                                           |  |      | 187,297    |   |      |   | 8,191,263   |  
|Other assets                                                                          |  |      | (7,473     | ) |      |   | 60,563      |  
|Accounts payable                                                                      |  |      | 202,941    |   |      |   | 104,199     |  
|Accrued expenses                                                                      |  |      | 53,929     |   |      |   | (171,783    | )
|Pension liability                                                                     |  |      | 56,094     |   |      |   | 300,465     |  
|Other long-term liabilities                                                           |  |      | 55,000     |   |      |   | 25,000      |  
|                                                                                      |  |      |            |   |      |   |             |  
|                                                                                      |  |     
|Net cash provided from operating activities                                           |  |      | 3,270,759  |   |      |   | 11,374,943  |  
|                                                                                      |  |      |            |   |      |   |             |  
|                                                                                      |  |     
|CASH FLOWS FROM INVESTING ACTIVITIES                                                  |  |      |            |   |      |   |             |  
|Additions to property, plant and equipment                                            |  |      | (791,705   | ) |      |   | (318,988    | )
|Disposals of property, plant and equipment                                            |  |      | 51,657     |   |      |   | 275,584     |  
|Proceeds from notes receivable collections                                            |  |      | 15,250     |   |      |   | 43,412      |  
|                                                                                      |  |      |            |   |      |   |             |  
|                                                                                      |  |     
|Net cash (used in) provided from investing activities                                 |  |      | (724,798   | ) |      |   | 8           |  
|                                                                                      |  |      |            |   |      |   |             |  
|                                                                                      |  |     
|CASH FLOWS FROM FINANCING ACTIVITIES                                                  |  |      |            |   |      |   |             |  
|Proceeds from long-term debt                                                          |  |      | 3,035,000  |   |      |   | 11,917,000  |  
|Repayment of long-term debt                                                           |  |      | (3,035,000 | ) |      |   | (15,946,604 | )
|Payment of cash dividends                                                             |  |      | (1,595,055 | ) |      |   | (1,630,681  | )
|Proceeds received on exercise of stock options                                        |  |      | 109,717    |   |      |   |            |  
|Common stock reacquired and retired                                                   |  |      | (269,096   | ) |      |   | (213,668    | )
|                                                                                      |  |      |            |   |      |   |             |  
|                                                                                      |  |     
|Net cash used in financing activities                                                 |  |      | (1,754,434 | ) |      |   | (5,873,953  | )
|                                                                                      |  |      |            |   |      |   |             |  
|                                                                                      |  |     
|Net increase in cash and cash equivalents                                             |  |      | 791,527    |   |      |   | 5,500,998   |  
|                                                                                      |  |     
|Cash and cash equivalents balance, beginning of year                                  |  |      | 6,365,557  |   |      |   | 133,152     |  
|                                                                                      |  |      |            |   |      |   |             |  
|                                                                                      |  |     
|Cash and cash equivalents balance, end of period                                      |  | $    | 7,157,084  |   |      | $ | 5,634,150   |  
|                                                                                      |  |      |            |   |      |   |             |  

See accompanying notes to condensed consolidated interim financial statements.



5



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SUPERIOR UNIFORM GROUP, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2010 AND 2009

(Unaudited)

NOTE 1 
Summary of Significant Interim Accounting Policies:

a) Basis of presentation

The condensed consolidated interim financial statements include the accounts of Superior Uniform Group, Inc. and its wholly owned subsidiaries Fashion
Seal Corporation and Superior Office Solutions, and their jointly owned subsidiaries, The Office Gurus and The Office Masters. Intercompany items have been eliminated in consolidation. The accompanying unaudited interim financial statements have
been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with accounting principles generally
accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto
included in the Companys Annual Report on Form 10-K for the year ended December 31, 2009, and filed with the Securities and Exchange Commission. The interim financial information contained herein is not certified or audited; it reflects
all adjustments (consisting of only normal recurring accruals) which are, in the opinion of management, necessary for a fair statement of the operating results for the periods presented, stated on a basis consistent with that of the audited
financial statements. The unaudited financial information included in this report as of and for the three and six months ended June 30, 2010 has been reviewed by Grant Thornton LLP, independent registered public accounting firm, and their
review report thereon accompanies this filing. Such review was made in accordance with established professional standards and procedures for such a review. The results of operations for any interim period are not necessarily indicative of results to
be expected for the full year.

b) Revenue recognition

The Company records revenue as products are shipped and title passes. A provision for estimated returns and allowances is recorded based on historical
experience and current allowance programs.

c) Recognition of costs and expenses

Costs and expenses other than product costs are charged to income in interim periods as incurred, or allocated among interim periods based on an estimate
of time expired, benefit received or activity associated with the periods. Procedures adopted for assigning specific cost and expense items to an interim period are consistent with the basis followed by the registrant in reporting results of
operations at annual reporting dates. However, when a specific cost or expense item charged to expense for annual reporting purposes benefits more than one interim period, the cost or expense item is allocated to the interim periods.

d) Advertising expenses

The
Company expenses advertising costs as incurred. Advertising costs for the three-month periods ended June 30, 2010 and 2009, respectively were $25,000 and $26,000. Advertising costs for the six-month periods ended June 30, 2010 and 2009,
respectively were $32,000 and $42,000.

e) Shipping and handling fees and costs

The Company includes shipping and handling fees billed to customers in net sales. Shipping and handling costs associated with in-bound and out-bound
freight are generally recorded in cost of goods sold. Other shipping and handling costs such as labor and overhead are included in selling and administrative expenses and totaled $1,512,000 and $1,546,000 for the three months ended June 30,
2010 and 2009, respectively. Other shipping and handling costs included in selling and administrative expenses totaled $3,115,000 and $3,231,000, for the six months ended June 30, 2010 and 2009, respectively.

f) Inventories

Inventories at
interim dates are determined by using both perpetual records on a first-in, first-out basis and gross profit calculations.



6



---

g) Accounting for income taxes

The provision for income taxes is calculated by using the effective tax rate anticipated for the full year.

h) Employee benefit plan settlements

The Company recognizes settlement gains and losses in its financial statements when the cost of all settlements in a year is greater than the sum of the
service cost and interest cost components of net periodic pension cost for the plan for the year.

i) Earnings per share

Historical basic per share data is based on the weighted average number of shares outstanding. Historical diluted per share data is reconciled
by adding to weighted average shares outstanding the dilutive impact of the exercise of outstanding stock options and stock appreciation rights.



|                                                                             |  |                            |           |                          |   |           |  |      |           |  |   |          
|---------------------------------------------------------------------------- |  | -------------------------- | --------- | ------------------------ | - | --------- |  | ---- | --------- |  | - | ---------
|                                                                             |  | Three MonthsEnded June 30, |           | Six MonthsEnded
June 30,
|                                                                             |  | 2010                       |           | 2009                     |   | 2010      |  | 2009
|Net earnings used in the computation of basic and diluted earnings per share |  | $                          | 983,170   |                          | $ | 701,272   |  | $    | 1,491,387 |  | $ | 198,327  
|                                                                             |  |                            |           |                          |   |           |  |      |           |  |   |          
|                                                                             |  |                            |           |                         
|Weighted average shares outstanding - basic                                  |  |                            | 5,901,723 |                          |   | 6,029,936 |  |      | 5,904,889 |  |   | 6,039,559
|Common stock equivalents                                                     |  |                            | 55,918    |                          |   |          |  |      | 53,936    |  |   |         
|                                                                             |  |                            |           |                          |   |           |  |      |           |  |   |          
|Weighted average shares outstanding - diluted                                |  |                            | 5,957,641 |                          |   | 6,029,936 |  |      | 5,958,825 |  |   | 6,039,559
|                                                                             |  |                            |           |                          |   |           |  |      |           |  |   |          
|                                                                             |  |                            |           |                         
|Per Share Data :                                                             |  |                            |           |                          |   |           |  |      |           |  |   |          
|Basic                                                                        |  |                            |           |                          |   |           |  |      |           |  |   |          
|Net earnings                                                                 |  | $                          | 0.17      |                          | $ | 0.12      |  | $    | 0.25      |  | $ | 0.03     
|                                                                             |  |                            |           |                          |   |           |  |      |           |  |   |          
|                                                                             |  |                            |           |                         
|Diluted                                                                      |  |                            |           |                          |   |           |  |      |           |  |   |          
|Net earnings                                                                 |  | $                          | 0.17      |                          | $ | 0.12      |  | $    | 0.25      |  | $ | 0.03     
|                                                                             |  |                            |           |                          |   |           |  |      |           |  |   |          

Awards to purchase 608,000 and 1,053,000 shares of common stock with
weighted average exercise prices of $11.61 and $11.36 per share, were outstanding during the three-month periods ending June 30, 2010 and 2009, respectively, but were not included in the computation of diluted EPS because the awards
exercise prices were greater than the average market price of the common shares.

Awards to purchase 608,000 and 1,066,000 shares of common
stock with weighted average exercise prices of $11.61 and $11.37 per share, were outstanding during the six-month periods ending June 30, 2010 and 2009, respectively, but were not included in the computation of diluted EPS because the
awards exercise prices were greater than the average market price of the common shares.

j) Use of estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to
make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.

k) Comprehensive income

Total comprehensive income represents the change in equity during a period from sources other than transactions with shareholders and, as such, includes
net earnings. For the Company, the only other components of total comprehensive income are the change in the fair value of derivatives accounted for as cash flow hedges and pension costs.



7



---

|                                                                  |  |                            |           |                          |   |         |  |      |           |  |   |        
|----------------------------------------------------------------- |  | -------------------------- | --------- | ------------------------ | - | ------- |  | ---- | --------- |  | - | -------
|                                                                  |  | Three MonthsEnded June 30, |           | Six MonthsEnded
June 30,
|                                                                  |  | 2010                       |           | 2009                     |   | 2010    |  | 2009
|Net earnings                                                      |  | $                          | 983,170   |                          | $ | 701,272 |  | $    | 1,491,387 |  | $ | 198,327
|Other comprehensive income:                                       |  |                            |           |                          |   |         |  |      |           |  |   |        
|Net unrealized gain during the period related to cash flow hedges |  |                            |          |                          |   |        |  |      |          |  |   | 5,000  
|Pensions - reclassification to net earnings during the period     |  |                            | 74,931    |                          |   | 109,362 |  |      | 149,861   |  |   | 218,274
|                                                                  |  |                            |           |                          |   |         |  |      |           |  |   |        
|                                                                  |  | $                          | 1,058,101 |                          | $ | 810,634 |  | $    | 1,641,248 |  | $ | 421,601
|                                                                  |  |                            |           |                          |   |         |  |      |           |  |   |        

l) Operating Segments

Accounting standards require disclosures of certain information about operating segments and about products and services, geographic areas in which the
Company operates, and their major customers. The Company has evaluated its operations and has determined that currently it operates in one segment, as defined in the standards.

m) Derivative Financial Instruments

The Company has had only limited involvement with derivative financial instruments. The Company had one interest rate swap agreement to hedge against the
potential impact on earnings from increases in market interest rates associated with interest payments on a variable rate term loan.

This
interest rate swap was accounted for as a cash flow hedge. This swap expired on April 1, 2009. No gains or losses were included in other comprehensive income for the three months ended June 30, 2010 and 2009, respectively. Gains of $-0-
and $5,000 were included in other comprehensive income for the six months ended June 30, 2010 and 2009, respectively. The original term of the contract was ten years.

n) Share-Based Compensation

The Company awards share-based compensation as an incentive for employees to contribute to the Companys long-term success. Historically, the Company
has issued options and stock settled stock appreciation rights. At June 30, 2010, the Company had 1,568,275 shares of common stock authorized for awards of share-based compensation under its 2003 Incentive Stock and Awards Plan.

For the three months ended June 30, 2010 and 2009, respectively, the Company recognized $27,000 and $12,000 of share-based compensation recorded in
selling and administrative expense in the Condensed Consolidated Statements of Earnings. This expense was offset by a $9,000 and $4,000 deferred tax benefit for non-qualified sharebased compensation for the three-month period ended
June 30, 2010 and 2009, respectively. For the six months ended June 30, 2010 and 2009, respectively, the Company recognized $409,000 and $191,000 of share-based compensation recorded in selling and administrative expense in the Condensed
Consolidated Statements of Earnings. This expense was offset by a $38,000 and a $13,000 deferred tax benefit for non-qualified sharebased compensation for the six-month period ended June 30, 2010 and 2009, respectively. As of
June 30, 2010, the Company had no unrecognized compensation cost expected to be recognized for prior share-based awards.

The Company
grants stock options and stock settled stock appreciation rights (SARS) to employees that allow them to purchase shares of the Companys common stock. Options are also granted to outside members of the Board of Directors of the
Company. The Company determines the fair value of stock options and SARS at the date of grant using the Black-Scholes valuation model.

All
options and SARS vest immediately at the date of grant. Awards generally expire five years after the date of grant with the exception of options granted to outside directors, which expire ten years after the date of grant. The Company issues new
shares upon the exercise of stock options and SARS.

During the six-month periods ended June 30, 2010 and 2009, respectively, the Company
received $110,000 and $-0- in cash from stock option exercises. No tax benefit was recognized for these exercises, as the options exercised were qualified incentive stock options.



8



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A summary of options transactions during the six months ended June 30, 2010 follows:



|                              |  |              |   |  |                                |      
|----------------------------- |  | ------------ | - |  | ------------------------------ | -----
|                              |  | No. ofShares |   |  | Weighted AverageExercise Price
|Outstanding December 31, 2009 |  | 745,650      |   |  | $                              | 10.65
|Granted                       |  | 144,520      |   |  |                                | 9.76 
|Exercised                     |  | (13,200      | ) |  |                                | 8.31 
|Lapsed                        |  | (68,200      | ) |  |                                | 14.95
|Cancelled                     |  | (3,550       | ) |  |                                | 10.13
|                              |  |              |   |  |                                |      
|Outstanding June 30, 2010     |  | 805,220      |   |  | $                              | 10.17
|                              |  |              |   |  |                                |      

At June 30, 2010, options outstanding, all of which were fully
vested and exercisable, had an aggregate intrinsic value of $476,364.

Options exercised during the three and six-month periods ended
June 30, 2010 had intrinsic values of $14,301 and $19,107, respectively. There were no options exercised during the three and six-month periods ended June 30, 2009. The weighted average grant date fair value of the Companys options
granted during the three month periods ended June 30, 2010 and 2009 were $1.94 and $1.03, respectively. The weighted average grant date fair value of the Companys options granted during the six month periods ended June 30, 2010 and
2009 was $2.26 and $1.05, respectively.

A summary of SARS transactions during the six months ended June 30, 2010 follows:



|                              |  |              |   |  |                                |      
|----------------------------- |  | ------------ | - |  | ------------------------------ | -----
|                              |  | No. ofShares |   |  | Weighted AverageExercise Price
|Outstanding December 31, 2009 |  | 297,030      |   |  | $                              | 12.08
|Granted                       |  | 35,980       |   |  |                                | 9.80 
|Exercised                     |  |             |   |  |                                |     
|Lapsed                        |  | (82,000      | ) |  |                                | 14.95
|Cancelled                     |  |             |   |  |                                |     
|                              |  |              |   |  |                                |      
|Outstanding June 30, 2010     |  | 251,010      |   |  | $                              | 10.81
|                              |  |              |   |  |                                |      

At June 30, 2010, SARS outstanding, all of which were fully
vested and exercisable, had an aggregate intrinsic value of $71,629.

There were no SARS exercised during the three-month and six-month
periods ended June 30, 2010 and 2009. There were 35,980 and 23,630 SARS granted during the six-month periods ended June 30, 2010 and 2009, respectively. The weighted average grant date fair value of the Companys SARS granted during
the six month periods ended June 30, 2010 and 2009 was $2.29 and $1.05, respectively.

The following table summarizes significant
assumptions utilized to determine the fair value of share-based compensation awards.



9



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|                            |  |                            |  |         |                          |   |      |   |         |         |  |   |            |  
|--------------------------- |  | -------------------------- |  | ------- | ------------------------ | - | ---- | - | ------- | ------- |  | - | ---------- | -
|                            |  | Three Months Ended June 30 |  |         | Six Months Ended June 30 |  
|                            |  | SARS                       |  | Options |                          |   | SARS |   |         | Options | 
|                            |  |                            |  |        
|Exercise price              |  |                            |  |         |                          |   |      |   |         |         |  |   |            |  
|2010                        |  | N/A                        |  | $       | 9.41                     |   |      | $ | 9.80    |         |  | $ | 9.41-$9.80 |  
|2009                        |  | N/A                        |  | $       | 7.63                     |   |      | $ | 7.89    |         |  | $ | 7.63-$7.89 |  
|                            |  |                            |  |        
|Market price                |  |                            |  |         |                          |   |      |   |         |         |  |   |            |  
|2010                        |  | N/A                        |  | $       | 9.41                     |   |      | $ | 9.80    |         |  | $ | 9.41-$9.80 |  
|2009                        |  | N/A                        |  | $       | 7.63                     |   |      | $ | 7.89    |         |  | $ | 7.63-$7.89 |  
|                            |  |                            |  |        
|Risk free interest rate (1) |  |                            |  |         |                          |   |      |   |         |         |  |   |            |  
|2010                        |  | N/A                        |  |         | 3.6                      | % |      |   | 2.2     | %       |  |   | 2.2%-3.6   | %
|2009                        |  | N/A                        |  |         | 3.2                      | % |      |   | 2.0     | %       |  |   | 2.0%-3.2   | %
|                            |  |                            |  |        
|Expected award life (2)     |  | N/A                        |  |         | 10 years                 |   |      |   | 5 years |         |  |   | 5-10 years |  
|                            |  |                            |  |        
|Expected volatility (3)     |  |                            |  |         |                          |   |      |   |         |         |  |   |            |  
|2010                        |  | N/A                        |  |         | 35.3                     | % |      |   | 41.7    | %       |  |   | 35.3%-41.7 | %
|2009                        |  | N/A                        |  |         | 32.2                     | % |      |   | 30.7    | %       |  |   | 30.7%-32.2 | %
|                            |  |                            |  |        
|Expected dividend yield (4) |  |                            |  |         |                          |   |      |   |         |         |  |   |            |  
|2010                        |  | N/A                        |  |         | 5.7                      | % |      |   | 5.5     | %       |  |   | 5.5%-5.7   | %
|2009                        |  | N/A                        |  |         | 7.1                      | % |      |   | 6.8     | %       |  |   | 6.8%-7.1   | %

(1) The risk-free interest rate is based
on the yield of a U.S. treasury bond with a similar maturity as the expected life of the awards.

(2) The expected life in years for awards
granted was based on the historical exercise patterns experienced by the Company when the award is made.

(3) The determination of expected
stock price volatility for awards granted in each of the three and six-month periods ending June 30, was based on historical Superior common stock prices over a period commensurate with the expected life.

|(4) | The dividend yield assumption is based on the history and expectation of the Companys dividend payouts.
|--- | --------------------------------------------------------------------------------------------------------

NOTE 2  Recent Accounting Pronouncements:

In January 2010, the FASB issued Accounting Standards Update 2010-06 Fair Value Measurements and Disclosures (Topic 820): Improving Disclosures about Fair
Value Measurements (ASU, 2010-06). The ASU amends Subtopic 820-10 with new disclosure requirements and clarification of existing disclosure requirements. New disclosures required include the amount of significant transfers in and out of
levels 1 and 2 fair value measurements and the reasons for the transfers. In addition, the reconciliation for level 3 activity will be required on a gross rather than net basis. The ASU provides additional guidance related to the level of
disaggregation in determining classes of assets and liabilities and disclosures about inputs and valuation techniques. The amendments are effective for annual or interim reporting periods beginning after December 15, 2009, except for the
requirement to provide the reconciliation for level 3 activity on a gross basis, which will be effective for fiscal years beginning after December 15, 2010. We are currently assessing the impact of ASU 2010-6 and do not expect the adoption
of this guidance to have a material impact on our condensed consolidated financial statements.

NOTE 3 - Long-Term Debt:



|                                                                                                 |  |              |   |                  |   |  
|------------------------------------------------------------------------------------------------ |  | ------------ | - | ---------------- | - | -
|                                                                                                 |  | June 30,2010 |   | December 31,2009
|Note payable to Wachovia, pursuant to revolving credit agreement, matured June 30, 2010          |  | $            |  |                  | $ | 
|                                                                                                 |  |             
|Note payable to Fifth Third Bank, pursuant to revolving credit agreement, maturing June 24, 2013 |  | $            |  |                  | $ | 

On June 25, 2010,
the Company entered into a 3-year credit agreement with Fifth Third Bank that made available to the Company up to $15,000,000 on a revolving credit basis. Interest is payable at LIBOR plus 0.90% based upon the one-month LIBOR rate for U.S. dollar
based borrowings (1.275% at June 30, 2010). The Company pays an annual commitment fee of 0.15% on the average unused portion of the commitment. The available balance under the credit agreement is reduced by



10



---

outstanding letters of credit. As of June 30, 2010, there were no balances outstanding under letters of credit. The revolving credit agreement expires on June 24, 2013. At the option of
the Company, any outstanding balance on the agreement at that date will convert to a one-year term loan. On June 30, 2010, the Companys previous revolving credit agreement with Wachovia Bank expired.

The credit agreement with Fifth Third Bank contains restrictive provisions concerning liabilities to tangible net worth ratios (.75:1), other borrowings,
and fixed charges coverage ratio (2.5:1). The Company is in full compliance with all terms, conditions and covenants of the credit agreement.

NOTE 4  Periodic Pension Expense:

The following table presents the net periodic pension expense under our plans for the following periods:



|                                                 |  |                            |          |   |                          |   |          |      |  |   |          |   |  |   |          |  
|------------------------------------------------ |  | -------------------------- | -------- | - | ------------------------ | - | -------- | ---- |  | - | -------- | - |  | - | -------- | -
|                                                 |  | Three MonthsEnded June 30, |          |   | Six MonthsEnded
June 30, |  
|                                                 |  | 2010                       |          |   | 2009                     |   |          | 2010 |  |   | 2009     |  
|                                                 |  |                            |          |  
|Service cost - benefits earned during the period |  | $                          | 158,000  |   |                          | $ | 182,000  |      |  | $ | 316,000  |   |  | $ | 363,000  |  
|Interest cost on projected benefit obligation    |  |                            | 256,000  |   |                          |   | 262,000  |      |  |   | 513,000  |   |  |   | 524,000  |  
|Expected return on plan assets                   |  |                            | (252,000 | ) |                          |   | (212,000 | )    |  |   | (504,000 | ) |  |   | (423,000 | )
|Amortization of prior service cost               |  |                            | 8,000    |   |                          |   | 8,000    |      |  |   | 15,000   |   |  |   | 15,000   |  
|Recognized actuarial loss                        |  |                            | 108,000  |   |                          |   | 160,000  |      |  |   | 216,000  |   |  |   | 321,000  |  
|                                                 |  |                            |          |   |                          |   |          |      |  |   |          |   |  |   |          |  
|Net periodic pension cost                        |  | $                          | 278,000  |   |                          | $ | 400,000  |      |  | $ | 556,000  |   |  | $ | 800,000  |  
|                                                 |  |                            |          |   |                          |   |          |      |  |   |          |   |  |   |          |  

A contribution of $1,000,000 was made to the Companys benefit plans during the six months ended June 30, 2010. A
contribution of $500,000 was made to the Companys benefit plans during the six months ended June 30, 2009.

NOTE 5 
Supplemental Cash Flow Information:

Cash paid for income taxes was $647,000 and $512,000, respectively, for the six-month periods ended
June 30, 2010 and 2009. Cash paid for interest was $20,000 and $69,000, respectively, for the six-month periods ended June 30, 2010 and 2009.

NOTE 6  Contingencies:

The
Company is involved in various legal actions and claims arising from the normal course of business. In the opinion of management, the ultimate outcome of these matters will not have a material impact on the Companys results of operations, cash
flows, or financial position.

NOTE 7  Related Party Transactions:

For the three-month periods ended June 30, 2010 and 2009, the Company expensed approximately $ -0- and $31,000, respectively, to Alpert Business
Consulting, LLC, a private corporation owned by the son-in-law of the Companys Chief Executive Officer, for consulting services. For the six-month periods ended June 30, 2010 and 2009, the Company expensed approximately $ -0- and $63,000,
respectively, to Alpert Business Consulting, LLC, a private corporation owned by the son-in-law of the Companys Chief Executive Officer, for consulting services.



11



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Shareholders

Superior
Uniform Group, Inc.

We have reviewed the accompanying condensed consolidated balance sheet of Superior Uniform Group, Inc.(a Florida
Corporation) and subsidiaries as of June 30, 2010, the related condensed consolidated statements of earnings for the three-month and six-month periods ended June 30, 2010 and 2009 and the condensed consolidated statements of cash flows for
the six-month periods ended June 30, 2010 and 2009. These interim financial statements are the responsibility of the Companys management.

We conducted our reviews in accordance with the standards of the Public Company Accounting Oversight Board (United States). A review of interim financial
information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the
Public Company Accounting Oversight Board (United States), the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our reviews, we are not aware of any material modifications that should be made to the accompanying condensed consolidated financial statements
for them to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in
accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of the Company as of December 31, 2009, and the related consolidated statements of earnings, stockholders
equity, and cash flows for the year then ended (not presented herein); and in our report dated February 26, 2010, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the
accompanying condensed consolidated balance sheet as of December 31, 2009, is fairly stated, in all material respects, in relation to the balance sheet from which it has been derived.



|                      
|----------------------
|/s/ GRANT THORNTON LLP
|                      
|Tampa, Florida        
|July 22, 2010         



12



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|ITEM 2. | Managements Discussion and Analysis of Financial Condition and Results of Operations
|------- | -------------------------------------------------------------------------------------

Certain matters discussed in this Form 10-Q are forward-looking statements intended to qualify for the safe harbors from liability
established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified as such because the context of the statement will include words such as we believe, anticipate,
expect or words of similar import. Similarly, statements that describe our future plans, objectives, strategies or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties
that may materially adversely affect the anticipated results. Such risks and uncertainties include, but are not limited, to the following: general economic conditions in the areas of the United States in which the Companys customers are
located; changes in the healthcare, resort and commercial industries where uniforms and service apparel are worn; the impact of competition; the availability of manufacturing materials, and other factors described in the Companys filings with
the Securities and Exchange Commission, including those described in the Risk Factors section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2009. Shareholders, potential investors and other readers are
urged to consider these factors carefully in evaluating the forward-looking statements made herein and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the
date of this Form 10-Q and we disclaim any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

Critical Accounting Policies

Our
significant accounting policies are described in Note 1 to the consolidated financial statements included in the Companys Annual Report on Form 10-K for the year ended December 31, 2009. Our discussion and analysis of financial condition
and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of the financial statements
requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate the estimates that we have made.
These estimates are based upon our historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Our actual results may differ from these estimates under different assumptions or conditions.

Our critical accounting estimates are those that we believe require our most significant judgments about the effect of matters that are
inherently uncertain. A discussion of our critical accounting estimates, the underlying judgments and uncertainties used to make them and the likelihood that materially different estimates would be reported under different conditions or using
different assumptions is as follows:

Allowance for Losses on Accounts Receivable

These allowances are based on both recent trends of certain customers estimated to be a greater credit risk as well as general trends of the entire
customer pool. If the financial condition of the Companys customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. An additional impairment in value of one percent of
net accounts receivable would require an increase in the allowance for doubtful accounts and would result in additional expense of approximately $187,000.

Inventories

Inventories are
stated at the lower of cost or market value. Judgments and estimates are used in determining the likelihood that new goods on hand can be sold to customers. Historical inventory usage and current revenue trends are considered in estimating both
excess and obsolete inventories. If actual product demand and market conditions are less favorable than those projected by management, additional inventory write-downs may be required.

Insurance

The Company
self-insures for certain obligations related to health insurance programs. The Company also purchases stop-loss insurance policies to protect it from catastrophic losses. Judgments and estimates are used in determining the potential value associated
with reported claims and for losses that have occurred, but have not been reported. The Companys estimates consider historical claim experience and other factors. The Companys liabilities are based on estimates, and, while the Company
believes that the accrual for loss is adequate, the ultimate liability may be in excess of or less than the amounts recorded. Changes in claim experience, the Companys ability to settle claims or other estimates and judgments used by
management could have a material impact on the amount and timing of expense for any period.

Pensions

The Companys pension obligations are determined using estimates including those related to discount rates, asset values and changes in compensation.
The discount rates used for the Companys pension plans were determined based on the Citigroup Pension Yield Curve. This rate was selected as the best estimate of the rate at which the benefit obligations could be effectively settled on
the measurement date taking into account the nature and duration of the benefit obligations of the plan using high-quality fixed-income investments currently available (rated AA or better) and expected to be available during the period to maturity
of the benefits. The 8% expected return on plan assets was determined based on historical long-term investment returns as well as future expectations given target investment asset allocations and current economic conditions.



13



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The 4.5% rate of compensation increase represents the long-term assumption for expected increases in
salaries among continuing active participants accruing benefits under the plans. Interest rates and pension plan valuations may vary significantly based on worldwide economic conditions and asset investment decisions.

Income Taxes

The Company is
required to estimate and record income taxes payable for federal and state jurisdictions in which the Company operates. This process involves estimating actual current tax expense and assessing temporary differences resulting from differing
accounting treatments between tax and book that result in deferred tax assets and liabilities. In addition, accruals are also estimated for federal and state tax matters for which deductibility is subject to interpretation. Taxes payable and the
related deferred tax differences may be impacted by changes to tax laws, changes in tax rates and changes in taxable profits and losses. Federal income taxes are not provided on that portion of unremitted earnings of foreign subsidiaries that are
expected to be reinvested indefinitely. Reserves are also estimated for uncertain tax positions that are currently unresolved. The Company routinely monitors the potential impact of such situations and believes that it is properly reserved. We
accrue interest and penalties related to unrecognized tax benefits in income tax expense, and the related liability is included in the total liability for unrecognized tax benefits.

Share-based Compensation

The
Company recognizes expense for all share-based payments to employees, including grants of employee stock options, in the financial statements based on their fair values. Share-based compensation expense that was recorded in 2010 and 2009 includes
the compensation expense for the share-based payments granted in those years. In the Companys share-based compensation strategy we utilize a combination of stock options and stock appreciation rights (SARS) that fully vest on the
date of grant. Therefore, the fair value of the options and SARS granted is recognized as expense on the date of grant. The Company used the Black-Scholes-Merton valuation model to value any share-based compensation. Option valuation methods,
including Black-Scholes-Merton, require the input of assumptions including the risk free interest rate, dividend rate, expected term and volatility rate. The Company determines the assumptions to be used based upon current economic conditions. The
impact of changing any of the individual assumptions by 10% would not have a material impact on the recorded expense.

Results of
Operations

As a result of the significant declines in our revenues in 2009, we implemented aggressive cost reduction initiatives to limit
the impact on our results of operations. These initiatives eliminated nonessential positions, streamlined our existing processes and shifted additional administrative positions to our Central American subsidiary.

The current economic environment in the United States remains very challenging. While we are seeing increased activity, the employment outlook in
the United States remains soft. Additionally, voluntary employee turnover at our customers has remained very low. The lack of job growth coupled with less voluntary attrition continues to weigh on the demand for our uniforms and service
apparel. Despite these factors, net sales increased 6.6% from $24,972,000 for the three months ended June 30, 2009 to $26,629,000 for the three months ended June 30, 2010. The increase in net sales for the quarter is attributed to sales to
customers acquired as a result of our acquisition of Blade in the fourth quarter of 2009. Net sales increased 8.1% from $48,688,000 for the six months ended June 30, 2009 to $52,609,000 for the six months ended June 30, 2010. Approximately
74% of this increase is attributed to sales to customers acquired as a result of our acquisition of Blade in the fourth quarter of 2009 with the balance coming from organic growth.

Cost of goods sold, as a percentage of sales, approximated 64.8% for the three months ended June 30, 2010 compared to 66.8% for the three months
ended June 30, 2009. The decrease as a percentage of sales in the three-month period is attributed to a reduction in direct product costs as a percentage of sales (1.7%) with the balance coming from more efficient operations in our value
added services area. Cost of goods sold, as a percentage of sales, approximated 65.2% for the six months ended June 30, 2010 compared to 67.8% for the six months ended June 30, 2009. The decrease as a percentage of sales in the six-month
period is attributed to a reduction in direct product costs as a percentage of sales (1.5%) with the balance coming from more efficient operations in our value added services area. The Companys gross margins may not be comparable with
other entities, since some entities include all of the cost related to their distribution network in cost of goods sold. As disclosed in Note 1 to the Condensed Consolidated Financial Statements, the Company includes a portion of the costs
associated with its distribution network in selling and administrative expenses. The amounts included in selling and administrative expenses for the three-month periods ended June 30, 2010 and 2009, respectively, were $1,512,000 and $1,546,000.
The amounts included in selling and administrative expenses for the six-month periods ending June 30, 2010 and 2009, respectively, were $3,115,000 and $3,231,000.



14



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Selling and administrative expenses, as a percentage of sales, approximated 29.5% and 29.0% respectively,
for the three-month periods ended June 30, 2010 and 2009. The increase as a percentage of sales in the three-month period is attributed primarily to higher salaries, wages and benefits in the current period (2.0%) and other miscellaneous
increases in expenses as a percentage of sales (0.5%); offset by increased sales to cover operating expenses (2.0%). Selling and administrative expenses, as a percentage of net sales, were approximately 30.3% and 31.4%, respectively, for the first
six months of 2010 and 2009. The decrease as a percentage of sales in the six-month period is attributed primarily to increased sales to cover operating expenses (2.4%); offset by higher share based compensation expense in the current period (0.4%),
a reduction in gain on sale of fixed assets (0.2%), and other miscellaneous increases in expenses as a percentage of sales (0.7%).

Interest
expense of $6,000 for the three-month period ended June 30, 2010 decreased 76.0% from $25,000 for the three-month period ended June 30, 2009. Interest expense of $8,000 for the six-month period ended June 30, 2010 decreased 87.7% from
$65,000 for the six-month period ended June 30, 2009. The decreases in the three and six-month periods ended June 30, 2010 are attributed to lower borrowings outstanding.

The Companys effective tax rate for the three months ended June 30, 2010 was 35.9% versus 31.3% for the three months ended June 30,
2009. The 4.6% increase in such effective tax rate is attributed primarily to the following: an increase in the rate from the impact of permanent differences between book and tax basis earnings related to share-based compensation (1.5%), a
reduction in the benefit for untaxed foreign income (3.0%), and the impact of other items (0.5%); offset by a decrease in the quarterly accrual for uncertain tax positions (0.4%). The Companys effective tax rate for the six months ended
June 30, 2010 was 36.3% versus 37.7% for the six months ended June 30, 2009. The 1.4% decrease in such effective tax rate is attributed primarily to the following: a decrease in the quarterly accrual for uncertain tax positions
(5.6%) and the impact of other items (0.3%); offset by an increase in the rate from the impact of permanent differences between book and tax basis earnings related to share-based compensation (1.5%), and a reduction in the benefit for untaxed
foreign income (3.0%).

Liquidity and Capital Resources

Accounts receivable and other current assets increased 0.4% from $20,709,000 on December 31, 2009 to $20,799,000 as of June 30, 2010 primarily
as a result of increased sales.

Inventories decreased 0.6% from $32,054,000 on December 31, 2009 to $31,866,000 as of June 30,
2010.

Accounts payable increased 3.7% from $5,426,000 on December 31, 2009 to $5,629,000 on June 30, 2010.

Other current liabilities increased 2.4% from $2,227,000 on December 31, 2009 to $2,281,000 on June 30, 2010.

Cash and cash equivalents increased by $791,000 from $6,366,000 on December 31, 2009 to $7,157,000 as of June 30, 2010. The Company generated
$3,271,000 in cash from operating activities, utilized $725,000 in investing activities primarily related to fixed asset additions of $792,000 and utilized $1,754,000 in financing activities. Financing activities included the payment of cash
dividends and the reacquisition of $269,000 of the Companys common stock, as discussed below.

In the foreseeable future, the Company
will continue its ongoing capital expenditure program designed to maintain and improve its facilities. The Company at all times evaluates its capital expenditure program in light of prevailing economic conditions.

During the six months ended June 30, 2010 and 2009, respectively, the Company paid cash dividends of $1,595,000 and $1,631,000. The Company
reacquired 27,737 and 30,802 shares of its common stock at a total cost of $269,000 and $214,000 in the six-month periods ended June 30, 2010 and June 30, 2009, respectively, pursuant to its stock repurchase program. The Company
anticipates that it will continue to pay dividends and that it will repurchase and retire additional shares of its common stock in the future as financial conditions permit.

On June 25, 2010, the Company entered into a 3-year credit agreement with Fifth Third Bank that made available to the Company up to $15,000,000 on a
revolving credit basis. Interest is payable at LIBOR plus 0.90% based upon the one-month LIBOR rate for U.S. dollar based borrowings (1.275% at June 30, 2010). The Company pays an annual commitment fee of 0.15% on the average unused portion of
the commitment. The available balance under the credit agreement is reduced by outstanding letters of credit. As of June 30, 2010, there were no balances outstanding under letters of credit. The revolving credit agreement expires on
June 24, 2013. At the option of the Company, any outstanding balance on the agreement at that date will convert to a one-year term loan. On June 30, 2010, the Companys previous revolving credit agreement with Wachovia Bank expired.

The credit agreement with Fifth Third Bank contains restrictive provisions concerning liabilities to tangible net worth ratios (.75:1), other
borrowings, and fixed charges coverage ratio (2.5:1). The Company is in full compliance with all terms, conditions and covenants of the credit agreement.



15



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|ITEM 3. | Quantitative and Qualitative Disclosures About Market Risk
|------- | ----------------------------------------------------------

Not applicable.



|ITEM 4. | Controls and Procedures
|------- | -----------------------

The Principal Executive Officer, Michael Benstock, and the Principal Financial Officer, Andrew D. Demott, Jr., evaluated the effectiveness
of the Companys disclosure controls and procedures as of the end of the period covered by this report (the Evaluation Date), and, based on such evaluation, concluded that, as of the Evaluation Date, the Companys disclosure
controls and procedures were effective to ensure that information the Company is required to disclose in its filings with the Securities and Exchange Commission under the Securities Exchange Act of 1934 is recorded, processed, summarized and
reported, within the time periods specified in the Commissions rules and forms, and to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and
communicated to the Companys management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

There have been no changes in the Companys internal control over financial reporting identified in connection with the evaluation
required by Rule 13a-15(d) under the Exchange Act that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Companys internal control over financial reporting.

PART II - OTHER INFORMATION



|ITEM 1. | Legal Proceedings
|------- | -----------------

None.



|ITEM 1A. | Risk Factors
|-------- | ------------

We are exposed to certain risks and uncertainties that could have a material adverse impact on our business, financial
condition and operating results. There have been no material changes to the Risk Factors described in Part I, Item 1A-Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2009.



|ITEM 2. | Unregistered Sales of Equity Securities and Use of Proceeds
|------- | -----------------------------------------------------------

ISSUER PURCHASES OF EQUITY SECURITIES

The table below sets forth the information with respect to purchases made by or on behalf of Superior Uniform Group, Inc.
or any affiliated purchaser (as defined in Rule 10b-18(a)(3) under the Exchange Act), of our common shares during the three months ended June 30, 2010.



16



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|                                           |  |                                    |  |                                 |       |                                                                                  |       |                                                                                     |        
|------------------------------------------ |  | ---------------------------------- |  | ------------------------------- | ----- | -------------------------------------------------------------------------------- | ----- | ----------------------------------------------------------------------------------- | -------
|Period                                     |  | (a) Total Numberof SharesPurchased |  | (b) Average PricePaid per Share |       | (c) Total Number ofShares Purchasedas Part of PubliclyAnnounced Plansor
Programs |       | (d) Maximum Number ofShares that May Yet BePurchased Under thePlans or Programs
(1)
|Month #1 (April 1, 2010 to April 30, 2010) |  | 2,900                              |  | $                               | 9.80  |                                                                                  | 2,900 |                                                                                     |        
|Month #2 (May 1, 2010 to May 31, 2010)     |  | 3,293                              |  | $                               | 9.87  |                                                                                  | 3,293 |                                                                                     |        
|Month #3 (June 1, 2010 to June 30, 2010)   |  | 2,522                              |  | $                               | 10.03 |                                                                                  | 2,522 |                                                                                     |        
|                                           |  |                                    |  |                                 |       |                                                                                  |       |                                                                                     |        
|                                           |  |                                    |  |                                
|TOTAL                                      |  | 8,715                              |  | $                               | 9.89  |                                                                                  | 8,715 |                                                                                     | 413,407
|                                           |  |                                    |  |                                 |       |                                                                                  |       |                                                                                     |        



|(1) | In July 2002, the Companys Board of Directors authorized the Company to repurchase 750,000 shares of its common stock. Through May 4, 2006, the Company
repurchased 728,098 shares of its common stock under such repurchase program. On May 5, 2006, the Companys Board of Directors approved additional repurchases of 750,000 shares of the Companys outstanding shares of common stock.
Through July 31, 2008, the Company repurchased 625,881 shares of its common stock under such repurchase program. On August 1, 2008, the Companys Board of Directors approved an increase to the outstanding authorization to allow for
the repurchase of 1,000,000 additional shares of the Companys outstanding shares of common stock. There is no expiration date or other restriction governing the period over which the Company can make share repurchases under the program. All
such purchases were open market transactions.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Under our credit agreement with Fifth Third Bank, if an event of
default exists, we may not make distributions to our shareholders. The Company is in full compliance with all terms, conditions and covenants of its credit agreement.

The Company believes that its cash flow from operating activities together with other capital resources and funds from credit sources will
be adequate to meet all of its funding requirements for the remainder of the year and for the foreseeable future.



|ITEM 3. | Defaults Upon Senior Securities
|------- | -------------------------------

Inapplicable.



|ITEM 4. | Removed and Reserved
|------- | --------------------



|ITEM 5. | Other Information
|------- | -----------------

None.



|ITEM 6. | Exhibits
|------- | --------

See Exhibit
Index.



17



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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.



|                    |  |                              |  |                                                                                                         
|------------------- |  | ---------------------------- |  | --------------------------------------------------------------------------------------------------------
|Date: July 22, 2010 |  | SUPERIOR UNIFORM GROUP, INC.
|                    |  |                             
|                    |  | By                           |  | /s/ Michael Benstock                                                                                    
|                    |  |                              |  | Michael Benstock                                                                                        
|                    |  |                              |  | Chief Executive Officer (Principal Executive Officer)                                                   
|                    |  |                             
|                    |  | By                           |  | /s/ Andrew D. Demott, Jr.                                                                               
|                    |  |                              |  | Andrew D. Demott, Jr.                                                                                   
|                    |  |                              |  | Exec. Vice President, Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer)



18



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EXHIBIT INDEX



|            |  |                                                                                                                                                                          
|----------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description                                                                                                                                                              
|            | 
|10.1        |  | Revolving Loan Agreement dated June 25, 2010 by and between Superior Uniform Group, Inc. and Fifth Third Bank.                                                           
|            | 
|10.2        |  | Revolving Line of Credit Promissory Note dated June 25, 2010 in the original principal amount of $15,000,000 payable by Superior Uniform Group, Inc. to Fifth Third
Bank.
|            | 
|15          |  | Grant Thornton LLP Awareness Letter.                                                                                                                                     
|            | 
|31.1        |  | Certification by the Chief Executive Officer (Principal Executive Officer) pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                    
|            | 
|31.2        |  | Certification by the Chief Financial Officer (Principal Financial and Accounting Officer) pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                     
|            | 
|32          |  | Certification of Periodic Financial Report by the Chief Executive Officer and the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.