Jerash Holdings (US) (JRSH) 12 Nov 242025 Q2 Earnings call transcript

Greetings. Welcome to Jerash Holdings Fiscal 2025 Second Quarter Financial Results Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Roger Pondel of Investor Relations. Roger, you may begin.

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

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

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

Thank you, Roger.

fiscal Europe And in the shipments Our nearly last export momentum quarter. customers steadily second have in positive quarter orders second year. been increasing. to pleased I'm U.S. Revenue increased the report the our began earlier that over year's that to for and solidified XX% purchase

of fully first now the are half factories calendar year Our through XXXX. booked

trade provide our advantages with reflected have the the that, customers and with and manufacturing and has Jordan, EU U.S., Results for which we in highlight free working countries. ties global friendly the quarter other confidence agreements Jerash, the that competitive by the

since mid-August. yet a geopolitical benefiting is normalized This, Export state profitability. another trade to in returned positive more in and the the region stable turn, note. front, On routes

ago fiscal XX.X% XX.X% the quarter first for year preceding and from increased XX.X% a margin to in Gross second in from quarter.

momentum, global the be by We diversified to focus new positive wider attracting selection and and our garments. a sustained are growth, producing will the that environment encouraged brands operating turn stability and will of hopeful that in

We to from the of receive U.S. seek manufacturing Europe as in companies by inquiries pricing, and trial continue followed Asia. brands major more outside partners for orders,

deliver plan expansion In future that tariff-free a fiscal high-quality products. operations in countries of of have potential cost-effective more our Tang, good well environment, share XXXX who that will shortly. With in Jordan, for capacity to a the manufacturing about to production charge to is beginning offer are we visibility Eric into support capability finished we growth.

turn now Hi, the over Eric. call will I to And him.

of remains many and are and Despite Thank parts you, instability in stable environment of the safe Sam. and Middle security secure, intensive added East, Jordan and the Haifa open checkpoints. with ports and geopolitical the Aqaba

Jerash for We that and to garments. are continue partner reliable our manufacturing responsible trust as producing fortunate the customers high-quality

Today, that base. able of new increasing starting beyond categories. the we more completely revenue reducing to diversify effectively for In are garment It and to facilities booked year-round, our number orders, half are seasonality. XX first next customer than the year. of we export now garments initiatives all to brands, to utilize and capacity we the continuing are benefits of gratifying production response our better are workflow we to manufacturing Operationally, our calendar realize with plan mix expand producing is an product our for are

approximately X,XXX people. Jerash diverse currently warehouses, operates a X production facilities employing X of and workforce

about million pieces. is Our current annual XX capacity production

production are growth as workforce dictates. we mentioned, As Sam to expansion additional capacity explore beginning and

global X this ongoing And joint efforts marketing are partnership. our partner, Busana venture Our production have for Apparel through Group, brands with begun we

anticipate opportunities emerge We future. the in new further business to

Our position based reputation leadership advantages on strong including attracting fronts, built of Jerash industry number Jordan. global brands optimism the well of operating reflects XX-plus and years, in new on competitive as over as opportunities a the past

will to Gilbert, discuss Gilbert turn I now financial call the over that, please. With to results. our

Thank XXXX to quarter new company in an past million the customers million other Revenue quarter's major Eric. X growth regions from $XX.X customers last Jerash's that onboarded the the from XX.X% during increased you, to for $XX.X revenue years. fiscal reflected our for The quarter same and U.S. increase second in year. shipments

Gross high points margin XX.X% production same same Gross was primarily quarter XXXX profit orders XX.X% increased to $X.X volumes, margins year. typically period customers. the shift XXX $X.X due for XX.X% in U.S. quarter the second increased fiscal from higher last with The to carry million basis to that increased the year. last to million in from expansion

fiscal to Operating the volume. second in million in expenses million last quarter same year, shipment $X.X SG&A $X.X for with higher second costs and to totaled catch was million quarter this the and in compared export the primarily up with same expenses garment higher million the last fiscal $X.X with compared were $X.X XXXX logistics increase shipping quarter period year. due schedules

XXXX increased primarily for year. same last the other the second $XXX,XXX in the the fiscal in quarter expenses expenses. Stock-based year. to versus higher second $XXX,XXX from last $XXX,XXX reflected fiscal quarter $X.X in compensation $XXX,XXX quarter interest fiscal with the The quarter XXXX the were second for same Total same quarter were period increase expenses year. Operating XXXX million last compared $XXX,XXX income in

fiscal to quarter same second in per for income to prior from increased quarter $X.XX last the the from fiscal the Net Net share increased income the $X.XX quarter $XXX,XXX quarter. second for year. in XX.X% XXXX XXXX $XXX,XXX diluted year

$X.X and was cash accounts with compared X months net for Jerash XX, Net million restricted cash million had million. $X.X As same of million. million and working $X.X period XX, by of the $XX.X of and year. activities was receivable September September cash was million XXXX, operating for Inventory provided capital $XX.X approximately ended XXXX $XX.X the last

larger third will continue. orders with global beyond in purchase this our are fiscal customers increasing quarter mentioned are by revenue to revenue XX% activity year robust we from by with to the our expected hopeful to Eric XX%. anticipated -- prior quantities XXXX coming year XX% growth will Accordingly, and are this year, full increase XX% this quarter more and we and from now Sam As earlier, guidance,

of mix. to gross XXXX, XXXX payable of November November for Jerash's be share is approved XX% year Our on goal the to November XXXX, margin logistics, approximately regular as record charges per subject fiscal quarterly XXXX. of XX, X, and On common expected dividend of Board to a stock, to XX, $X.XX Directors XX%, its on product stockholders

up I and operator. the turn back open now the call will call questions, for We will the to

coming [Operator question The Lake Instructions] is first Mark Street. Argento from from

translate that you said here. revenue us if of questions for kind into to the thanks against kind currently we color Just -- And roughly kind of a looks Eric, put of at, that like what the help you number could the million scale revenue platform today. opportunity pieces. couple a business and the quick I for additional Can think is try of the XX capacity Then and of that? scope

basis, a the be is facilities in us you fully If bit for have maybe productive productive on you peel if relatively revenue? million a running onion that's there, $XXX $XXX that helpful. -- a just Could would million, the that kind $XXX million, little of

our and at year, anticipate be right full until looking we're now, are the of going -- all booked we -- now, calendar we're full June or factories right running XXXX. well, July we're capacity, at to Well, to next

And some mix, the we So a to FOB because orders. and right, customers, mix product averaging customers, customer $XX or -- are depending that the on maybe think piece. the I Is those most of we have Eric? $XX have

Yes, average.

we orders, will CM some have orders, orders. fill up cost enough in the customers, at we include don't fabric sales. a the of And FOB lower Average, those And kind we with the when right. price then sale are make don't especially factories because

So averaging a maybe $XX to those piece. are $X

So is be scale total of determine the to the because mix. it hard going is what to

we're seeing at of comparing orders customers a we're looking experience higher-quantity point, -- FOB lot the previous months our FOB in and because anticipating But more to we're upcoming X orders. this placing orders placing

half our significant be going So of that's the to we year versus having anticipate the experience. second why seasonality prior is not

we first think $XX at total is and increase growth to year to So about going the XX% be from still X came in we second strong. million, be looking to at I believe, XX% half months, our we're year. last Currently,

be stick with increase expansion it close we just to because between projection satisfy So million. going we're growth. is capacity to to of just at we to But $XXX want and in need XX% yes, XX% million more the -- demand. And looking our to we $XXX

exactly Okay. my that's follow-up that's helpful. And question.

what's the production upfront many additional bring how On production you of to are contemplating? then of millions online? the pieces And side, that cost expansion related

contemplating at analyzing to Well, the kinds have actually One that all of have of the looking currently, opportunities. we're years. been piece past for planning opportunity been utilize X and we the land that still X to owning is and numbers we

because We uncertainty, a then because kind war, of it, But we new COVID, building factory. And aside. the stopped. it have worked of on on of we then the put

scenarios. But working all kinds now of on we're aggressively

the we costs. we another so build also so at pay to level build that have maybe warehouse warehouse that But a having capacity. can land, save we're or some utilize warehouse additional try then on that also so new build for of space top manufacturing can not to machineries, we'll the rental story First, looking but we for another

X-year of and working projecting same growth. sales on on to a the time, years' how X from much mix at plan, we're team, our So And need. projection gathering information customers working we're and the our a the marketing still we

sales information solidified once needs. in plan, in, more So those growth all expansion both a will earnings we we growth terms then have of get and

we how kind new we project require what cost And more to and time, to a will we of build question prepared the at to will answer much that want factory. about need that be capacity

opportunities Now factories. time, be same comes might other the other up. or purchase building Maybe or at can that another we lease there

we know. So don't

comes consider will it. Just across, we whatever then

additional long at a you more Or move if that's plus? would it would are decided calendar build take you year? to that XXXX capacity we little Do to to a opportunity quickly? Or -- think on? How is XXXX year another -- that out year something, bring

need something, we multiple could it If in be stages. build -- a to

warehouse with that the people, just building construction probably the warehouse. kind if required Because take we building there are So less of will using we said, it methods just a XX are land, right when a shorten like some now, than can months. start the I talking time

to that that will take than X less probably Is Sam But about, longer, want factories build you to years. maybe or facility, definitely, shorten a than but longer and a think Eric? we production need year, that if we might to what

Yes.

have add? you Do anything to

consider, will production to we the Maybe stages. into together warehouse divided first a be with will phase, on floor. X plans expansion our mean I build

Okay. are initial This at I with our, in is But our mean, we our mean, I increasing some planing. factory mean, internal, renovation. I already, same time, the own capacity,

actually, utilization already of making okay, spend already X.X some X% have to existing So lot increased we are money current to X% million, -- the our facility. don't million are And we're that for that, our capacity, of means maybe because okay, we we already okay? expansion our in It we waiting a X while plan. We we still big increased spaces, capacity. full and have of

stories will story, our will if that, multiple the be at build on foundation we we may And story. that build I able might maybe X is kind the think just the X to start. of though capable want construction we'll stories to add initial Even prepare build to foundation to in want not but bear But make it the X stage, it. we X building, or all or I plan, we sustain of also to

Great. one picture one of for then helpful. kind bigger That's And a just super me, last question.

the done and historical a talking Obviously, in politically, tariffs has are forward. the tariffs elections U.S. of point Just kind administration that, Trump the with administration the put got big that

out in tariffs of to for of net seen China some if us Jordan? you flow, that additional benefit more and you historically of what a terms on potentially and and prior that, refresh have moving move product get to from around Maybe positive can that this administration. just looking you China in Is guys

process. I trend be to We've now. if But will will of the I China. of can X going heightened, -- seeing or you that rate replace a tariff lot from to I new China. completely But But been up it from the out Yes. will speed with the it is try this sourcing years or think getting up X for administration, especially think our China never speed more process the think customers of

positive So that is a to us.

year nice been guys, the know work but not you a I Nice it's for or into easy -- X. Great. last job.

Mark. you, Thank

you. thank Yes,

Thank you.

Yes, trial a X of picture clear instead growth new in we give and to at customers to itself, for place orders. would besides venture, think currently most China. fact, customer bring the like from Jerash offshore that knocking is And customers think, terms few in country Busana business, the of it I us least a joint I in our very door or presents duty-free order of there

So -- quite book. I so order we are mean about the optimistic

have And the the plan besides factory as to as and we we build dormitory discussed, well. a just may immediately warehouse,

plan decision not. should months, have Yes. a So I or on whether will few think final in we the these we expansion embark

We will yes, after know, have we let plan. X-year you the

from question from Igor is Lares Capital. next The [Operator Instructions] Novgorodtsev coming

happy in guidance. very signs results so in much quarter to the margin-improved and congratulations. I'm turnaround, of First the your see stronger both about a all,

I know difficult the years. has been very situation of couple last So

and to I'm very, investor. see it a So very happy pleased major as

Thank you.

And point My thousand every view, so your of will significant expenses, talk quite and of have But reduce from question times your interest yet forward? like source about think you before. structure expenses. hundred a this cash significant you've find is, of you my everything not a going interest you time. maybe for easy this some do hand. have bit is question up incurring it But your expense little quarter, a a cash, way on been transfer the about corporate Because cash. high been is realize I be it's complex several couple perhaps brought interest a the rates -- looks utilization I stay of to can and to

with to Yes, increase Okay. as we sales on growth rate. costs a even are our to -- higher going focus reduce really trying we

we sudden in the the more VF New major our and called financing volume, capital. and program, past supply chain offered working X were volume Face utilized in of North the However, by quarters, sales well, Corp. of we customers, And in Balance. of increase need because -- the is also which something X

we of What allowing then by and -- us customers' but it to have paid banks form pay the is does interest. to get some

is Now is rate on the this as still [indiscernible]. based bank is regular interest or loans, the as not but high to it according

incur globally rate that's But so than previously, sales. So along are at this than higher with least years, expenses, interest as very the watching we higher interest higher is previous why we closely.

we is of not line LCs. that Another the with for it's sometimes I to something raw materials, is source with this interest credit just used And expenses But on it the credit our pay is DBS. that we however, have line think bank, significant.

nonusage. have going time use And line experience Otherwise, credit so we we of but the try as from it. is, to much, banks because our to time, cut are it the to not use to

interest expenses. to same But we're very bank, watching please want it the save We trying at the closely. time, to

hope will of the interest. balance well to having financing So it using as we watch and that the using much not the I And too on spend way program, try the answers more closely loan, to your as question.

comprehensive Do diversify Are perceived? opportunity of manufacturing. That's few covered I be garment it from less a than My answer. that major there? coup in election. of you basically, much to was Bangladesh other that is companies know just a any seems other also months recent you it company geopolitical. looking hub stable a to my it, is question, see very now any U.S. some a Bangladesh a question Recent But Bangladesh turmoil sort. ago, already

Bangladesh sourcing answer of companies or Do from that see Sam, question. you opportunity Jordan? you any can their moving to Maybe Eric

X in So Jerash cooperation there approached past factories discuss X during so or And opportunity group, are group apparel and or together. new apparel already already, and opened months okay, the actually, big already X was business launched Jordan, some to Bangladesh by they also okay, some production. start

not agreement, did we But have definitely approached we are still, mean, by into but I them. any, been we -- So -- go yes. confirmed

By manufacturers?

Bangladesh. in manufacturer by Yes,

is Okay. market. how I any gives actually your tremendous more Great questions. us don't Bangladesh to Right. hear important in given opportunity that have

I queue hand the were this for other time. closing no Choi like to questions now Sam would There in at back remarks. to call

Okay. speaking continuous us for and your Thank you of forward and all quarter. joining with today you you, you. Paul, to Thank support. look to for thanks We next

Thank you, everyone.

Thank you.

That does conclude today's conference.

You this may time. your at lines disconnect Thank for your you participation.