Jerash Holdings reports Q3 EPS 0c vs. 2c last year

Reports Q3 revenue $35.4M vs. $27.5M last year. “While revenue increased by nearly 30 percent for the fiscal third quarter, results were lower than originally anticipated,” Sam Choi, Jerash’s chairman and chief executive officer, said. “Sales were impacted by congestion at Israel’s Haifa port due to further geopolitical turmoil in the region, which, in turn, caused delays in shipments. We estimated approximately $3.8 million of finished apparel delivered at the port but not shipped until early in the fiscal fourth quarter, along with incurring more than $100,000 of port storage fees. Furthermore, we held back another $2 million of finished products in our warehouse for the same reason. We are pleased to report that the port logistics have markedly improved since late January, and ocean containers are being shipped in a more timely manner. On the business front, we are continuing to receive inquiries from new and existing customers that are looking to add manufacturing partners in tariff-free countries such as Jordan. Jerash’s long history and reputation for quality and performance place us in an excellent position to capture greater opportunities in the years ahead To support expected growth, we recently started expanding two existing manufacturing facilities, which will increase capacity by 15 percent; the project is expected to be completed by June 2025. Separately, we are actively working with the Jordanian government to expand our existing facility in Al-Hasa, which by the end of this calendar year, could add an additional five to ten percent of production capacity. We also are assessing longer-term, larger-scale expansion plans. At the present, our factories are fully booked through August of this year.” Choi added.