Jerash Holdings (US) (JRSH) 13 Aug 242025 Q1 Earnings call transcript

Greetings, welcome to the Jerash Holdings Fiscal 2025 First Quarter Financial Results Conference Call. [Operator Instructions] Please note, this conference is being recorded.

I will now hand the conference over to your host, Roger Pondel, Investor Relations for Jerash Holdings.

You may begin.

Thank you, Holly, and good morning, everyone. Welcome to Jerash Holdings fiscal '25 First Quarter and Full Year Conference Call. PondelWilkinson, Investor with firm. Pondel Roger Jerash Relations Holdings' I'm Gilbert introduce pleasure Chairman Choi; It Tang, Officer, in my company's to leads it's and the the who Financial Sam will be Jordan. Officer, momentarily company's operations Eric Executive and Chief Lee; Chief

on other time listeners subject within Reform turn to most with our no are filed the Exchange required the from forward-looking numerous the obligation to the recent Securities call the Litigation meaning from and of of and of beyond except company to the the may XXXX. by XX-K any which statements statements company's call I at SEC Factors statements, Risk including the could to results undertakes Securities with Sam, these as of Jerash today's www.sec.gov, as Before want along SEC's forward-looking conditions, filings many the company's include and website forward-looking are Act made law. section with copies materially Such in I those differ to over remind Form that available forward-looking statements time. Actual Commission are forth of set update Private which control, Holdings

with to And the is to call pleasure Sam turn it that, my over Sam? Choi.

Roger. and an receive for in the [indiscernible]. I'm to customers pleased And of Revenue fiscal Europe. XXXX that year's timing a are shipments increased number quarter continuing export you, for Thank of global purchase last to first quarter, nearly U.S. XX% to first over increasing we orders report

and inventory. to which turmoil ongoing freight in rates disrupt and by resi, margin Gross again ocean was ocean routes trade up affected continues drove the the

last production catch associated primarily our also quarter, issues. with deliveries costs from related delays to challenges manufacturing to We carry the to material schedule over additional raw and in customers due up incurred

by March quarter for margin gross first quarter ended basis the XX. the over XXX preceding more improved than Nevertheless, points

the second this half quarter anticipate in a continuing help short-term add would source operating second logistic in to time. return of seeking year. some costs and to stable high raw vendors address Turkey are the Egypt the To more of from a we situation, to materials, fiscal related fiscal the some which Although costs transportation help XXXX, in and environment we alleviate more

all, seen in our as from long-term the encouraged we proceed fiscal pace are coming a in All XXXX. are X past in by customers we the years. orders have positive not at global we into Purchase momentum

Apparel partner. are we well, additional Busana from joint our orders through receiving As venture major Group, trial brands other

and initiative will off. economic for diversifying base customer environment as of well paying our Our strategy is We position it improves. growth believe us

and [ that of grave and Jordan in day-to-day safe. We ] remains life are business stable

due in turn share disruption to the who region. Eric the our operations event our in over to minimal charge him. will surrounding about an the of more of uncertainty And countries, the operations put ensure show. been Tang, However, is place in have contingency in that political call plans the Jordan, escalating I'll to to now situation Eric? in in

Sam. you, Thank

materials we over supply supply asset had from certain orders XX% significant which incurring the our quarter disruption freight some first schedules call, XXXX we quarter's shipped adequate in chain ability up cases, customers, up ramp our in the had delayed to time. last last fiscal quarter. air And to catch the during on mentioned and were with delivery to to To to of from cost. production shipment delayed we turn receive of XX% Approximately As affected production. in Asia,

new forward. Despite partner. customers the we the unstable their and fiscal responsive growth. Jerash We additional manufacturing confidence into to are Middle expect shipments moderate have time over no our to in be in our East, starting experiencing responsible air freight mid-August in to trusted and year, continue hopefully, environment good Thus going far

delighted of Our orders retail are at producing this benefits and new from December we in fully with XXXX. are to and we we we starting full customer categories. mix a our product to customers, major well [indiscernible] that into are to level. of manufacturing realize [indiscernible] capacity are Currently, garments are constant branded our at we period expand experiencing the are product new the continuing of number strategy. Today, booked with base, facilities customers, operating all following approval

venture. minimize Our joint objective receiving Busana brands remains are throughout and global production Group Apparel are from this for revenue seasonality. on efforts to utilization the X through Marketing we additional balancing capacity year continuing, orders trial

We our in apparel orders brands, steadily Orders expect trial are increasing additional for receiving Armani's including are Armani high-end clothing arise premium business we opportunities additional the from future. lines. other will new X European-based and

about are the new forward our look We excited will further, and we the to products which expanding margins. brands enhance anticipate

in in up in the escalated As partners an to event with of to are and region. Sam mentioned flare locations place our plans before, disruptions minimize contingency the in other operations our Indonesia

discussed financial Gilbert, have now discuss our as We turn results. Gilbert please? with our call plans the such to to well. I customers will over

orders to for and with fiscal $XX.X major revenue the earlier previous during other million an $X U.S. the $XX.X mentioned to first It also included quarter and past quarter in Eric. million reasons delayed record for the Jerash growth due were Revenue approximately first from by quarter you, same reflected that of million XXXX Sam $X onboarded our year. quarter last million from Thank to Eric. to customers customers increase X that in regions new company increased This XX.X% years. shipments the

in the in schedules with in XX.X% compared decreased year, margin XXXX with the year. this Gross material last Gross in were manufacturing was by quarter Operating the profit $X.X to payroll million gross same higher with XX% the raw costs negative increases fiscal first due with expenses primarily costs customers. Stock-based to first margin for included first additional loss was freight in higher last increased quarter. logistics compared impact expenses $XXX,XXX increase million quarter XX.X% fiscal the million XXXX basis associated from million expenses. import $X.X operating for the $X.X Operating period points in quarter included a air of quarter the in of expenses totaled support last XXXX quarter last $XXX,XXX Other the for $X.X $XXX,XXX resi million versus This customers. The to period compensation and same to first first million last well had compared quarter an up XXXX compared same catching year. quarter $X.X additional labor income delivery this approximately last costs $XXX,XXX million of XXX up quarter and caused increase for year. the for as as on shipping same to sampling to costs operating $X.X SG&A same disruption with year. on year. combined of in fiscal fiscal expenses the costs same $X.X deliveries catch quarter the the

Total $XXX,XXX of $XXX,XXX in first higher quarter with in primarily interest other same year. certain expenses were increase chain expenses the The reflected quarter major from the fiscal last financing program XXXX customers. supply compared the

the of quarter the $X.XX per $X.XX million compared share same year. was in or period net fiscal first XXXX In $XXX,XXX $X.X last loss or with per income share. Net

Net net cash accounts cash the $X.X ended million million XX, $XX of As and and cash in XX, $XX,XXX of with compared of million Jerash $XX.X operating provided activities activities had $X.X was used same was and of XXXX, for restricted by million. receivables cash capital quarter June XXXX, the for year. last Inventory approximately operating net period $XX.X working June was million.

are Eric and earlier, anticipated prior increase by Sam quarter and Revenues and factories ordering year increasing mentioned revenue for into As grow quantities with December. from patterns year full we booked XX% XXXX XX% quarter the expected second fully larger through to fiscal by to XX%. is XX% is to XXXX, see the to

approximately Our expected fiscal gross product to and subject the is logistics and goal to be shipping XXXX year charges XX%, XX% mix. margin for to

On turn XXXX. With operator. record August quarterly that, XXXX now on $X.XX dividend questions, common share Jerash stock, of approved open payable to the to will the up call and will XXXX, regular per of the stockholders August call I as Board of of back on we and its for XX, August XX, X, Directors a

today with Street. [Operator Lake for is Argento Instructions] Your from Mark question first

had apart to it up took It to you us a I coming Was full little like looks that I to from sure just question Or like that for there -- year you additional meaningfully XX%. wins there? looks in on a I make is want to guidance. you was maybe It new bit where fairly the XX% now revenue break understand revenue could First from. the all specific XX% understand this right. to for XX% of couple

you, thank Mike. Well,

half second Our more year is revenue versus year. increase of last year be the fiscal fiscal the going on the to this for

quarter be be is are we first is through first orders strong then weather achieved in will year, for now almost that in more -- with second the remember, the heavy quarter that is the quarter on par the And to last when producing continued the of coming you always or half, actually fully half the on summer still for the December year fourth As third quarter, coming the But for revenue first record we're to which more seasonality be XXXX. quarter, our the XXXX. the booked our on January But to March in half. And clothings, see already lower. through quarter coming third fiscal second of and because we're a going we anticipating and orders we are the especially this somewhat the the first quarter strong. quarter of in spring,

those of see or we though strength the booked orders are even but confirmed turnaround. So yet, not the

of as the forecast as almost we second this to first half year. the be half high So

the quarters, we're see seeing then second Does to we That sense? the half of year, half the in teens, X second but a second comparing growth in seeing growth year's So will means stronger higher the first last comparatively. it in the half. percentage growth make much we're

existing adding kind is of catch-up coming you do attribute customers? that? that to order the incrementally with on new kind customers And flow? those Or of Are orders and

first more the that But half now more regular past customers that, a and customers new the did years, trial coming order sampling, ordering. more that the those to catching increase orders is place anticipating they we are It's of for up. will starting we're lot indicated in and especially they in couple latter. their It's of

So of back still rid orders spring. the up delayed until now we're was August, in trying to that of get until -- up the some

in in the the like We expense you margin still adding to fully a think improvement? guessing there. in supply I year, then do And guys the should margin you we you're play looking that's Great. QX? what kind results. disruptions below bump for to from full of have chain little chain What the in you little QX have The issues what now? And a down from you point? that for have came sequential guys or see catch-up I'm feel around that hands obviously we your you maybe bit of knew bit, trying gross the do were around supply your Do this the expectations quarter. that hand gross But happened at QX

still to on Well, obviously, reduction -- like cost are looking higher the well, teens, and it though bringing and seeing cutting I after to to but to And materials. first overhead, -- at projects SG&A, our maybe hopefully, lower the It's raw lower and stabilize. because the we're have year, first cost a significant trying think not having even we're pretty costs. costs of will the we of But be are we second still freight second situation of become But manufacturing half also, pay that we that is of implementing stabilized. reduce our kind and even to higher the we're August, labor costs going also high because be lot quarter. inbound quarter will it in not second the the of quarter, going

kind the it then question. of end you're your expense feels disruptions, having or that where of I the you unfair to -- freighting little some where if to brunt guys provision you And of last Is you customers be share incremental they with all able that able is there mean of be any bear provisions air there to some some to you Are of relative of be expenses? to that made expense. Or whole customers guys of your in on in those sharing of for that? some take can the work up any a because who might

anticipated, allow bit compensate, a us that compensate to that our little They -- additional most will each can Well, order on also for accept situation that as have the not understand will shipments Those paying that freight. add cost time. we and if our to the are with cases, customers. we possible they the it that but nobody they are inbound we they incurred, margin allow will to will and -- situation wouldn't on have. air the as they us a freight is in especially not understand to directly they delivery if But longer they having more, they them much

catching to So a contingent additional your will allow manufacturing. there's direct orders But margin. little question, answer no up for going compensation for bit they cost the just of for for forward,

be, May yes.

several major mean what freight months, inbound they customers, know our inbound they're of to increase might -- willing some the of freight some charges, order charges future event our absorb them shop of some the already, are call and -- major mean to the freight increased order Regarding some when price yes. last we to since charges of or I our them, inbound the we customers, willing let the for future equity

Yes. Then last That's one, helpful. Gilbert. one

On in of that? on expensive. the Where historical I supply [ know actively are that? ] utilizing financing. been guys Are of has you terms you kind in leaning a chain

especially financing the and interest when pretty that is rate still silver. is to tied Yes, high, cost

try to freight ordering increase, much cash that as pay on. and into But for material as to sure and use to as just raw have can. it so So we we as the to sales and we make have that sometimes, the flow not enough purchase tap we to

So interest in unnecessary much make were incur that watching but it yes, the every costs. quarter, we're time little don't sure the a high bit last and expenses we too interest

end of turn question-and-answer I reached [Operator Choi remarks. call closing over to will the now and Instructions] We the for session, have Sam the

look for to your operator. joining with for Thank speaking continued thanks forward next you, today and of And We quarter. all Thank you you Yes. you, to us support. everyone.

may time. for and concludes you disconnect your this your This lines at conference, today's participation. Thank you

you. Thank

Thank you, everyone.