Jerash Holdings reports Q1 EPS (11c) vs. 4c last year

Reports Q1 revenue $40.9M vs. $34.7M last year. “Revenue for the fiscal 2025 first quarter grew by nearly 18 percent over the prior year period to a record high,” said Sam Choi, Jerash’s chairman and chief executive officer. “We are continuing to receive an increasing number of purchase orders for export shipments to our global customers in the U.S. and Europe, and our factories are currently fully booked through December 2024. “Jerash’s gross margin was once again impacted by the Red Sea shipping crisis, which continues to disrupt ocean trade routes, and led to significant increases in ocean freight rates and inland trucking prices. We faced delays in receiving raw materials last quarter due to the disruptions in the Red Sea, resulting in delays in production. Consequently, we incurred additional manufacturing costs associated with catching up on deliveries to our customers to compensate for these delays. “The increased logistics and labor costs had an approximately 440 basis point negative impact on gross margin for the first quarter. Nevertheless, gross margin increased by about 400 basis points over the preceding quarter. While some of the higher costs are continuing into the second quarter, we anticipate a more normalized operating environment in the second half of this fiscal year. “Positive momentum is continuing as we proceed into fiscal 2025. We are receiving a steady flow of purchase orders from global customers, expanding our product mix, as well as an increasing number of trial orders from major brands through our joint venture partner, Busana Apparel Group. To ensure minimal operational disruptions in the event of an escalating geopolitical situation in the region, we have put contingency plans in place with our partners in other locations,” Choi added.