Jerash Holdings Reports Financial Results for Fiscal 2025 Fourth Quarter and Full Year
- Record annual revenue of $145.8M, up 24.4% from prior year
- Q4 gross margin significantly improved to 17.9% from 7.0% year-over-year
- Secured major order from large U.S.-based retail corporation through Hansoll Textile partnership
- 15% production capacity increase expected from Q2 FY2026 due to facility expansion
- Factories fully booked through December 2025
- Strong Q1 FY2026 revenue guidance of $38-40M
- Ongoing logistics challenges at Haifa port due to regional conflicts affecting shipments
- Q4 FY2025 net loss of $144,000, though improved from $3.1M loss year-over-year
- Full year FY2025 net loss of $840,000
- Increased operating expenses and higher interest expenses from supply chain financing
- $3-4M shipments deferred to Q1 FY2026 due to port delays
Insights
Jerash shows strong revenue growth despite logistics challenges; margins improved but still posted annual loss.
Jerash Holdings delivered record annual revenue of
Gross margin improvements stand out as a key positive, expanding to
Despite these operational improvements, Jerash still reported a net loss of
The outlook appears positive with Q1 FY2026 revenue projected at
However, investors should note ongoing logistics challenges related to regional geopolitical issues, specifically the bombing of Haifa port necessitating alternative shipping routes through Jordan's Aqaba port. These disruptions could continue to impact timely revenue recognition in the near term.
-- Record annual revenue of
Fiscal Fourth Quarter Highlights
Gross profit increases to
$5.2 million from$1.5 million a year ago.Gross margin increases to 17.9 percent from 7.0 percent a year ago.
Revenue rises 35.6 percent to
$29.3 million , despite approximately$3 -4 million of shipments deferred to first quarter of fiscal 2026, due to delays at Haifa port.
FAIRFIELD, NJ / ACCESS Newswire / June 23, 2025 / Jerash Holdings (US), Inc. (NASDAQ:JRSH) (the "Company" or "Jerash"), which manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands, today announced financial results for its fiscal 2025 fourth quarter and full year ended March 31, 2025.
"We are experiencing growing demand from our existing customers and a notable increase in new inquiries from brands and large apparel manufacturers seeking strategic collaboration," said Sam Choi, Jerash's chairman and chief executive officer. "As recently announced, Jerash secured a major initial order for one of the largest U.S.-based multinational and omnichannel retail corporations through a strategic collaboration with Hansoll Textile, a leading South Korea-based global apparel group.
"While this is an exciting time for Jerash on the business front, revenue continues to be impacted by logistics challenges at Israel's Haifa port, stemming from ongoing geopolitical turmoil in the region. In view of the recent bombing of the Haifa port, we are seeking alternate shipping routes through the Aqaba port in Jordan, which may delay shipments in the second half of June. Nevertheless, our business remain solid and on a growth trajectory. As we enter fiscal 2026, we are focused on improving operations and maintaining the positive momentum.
"On a positive note, the expansion of our existing manufacturing facilities has been completed, and we are in the process of bringing in additional foreign workers. A 15 percent increase in production capacity is expected to begin contributing to the Company's performance in the second fiscal quarter of 2026. At the present, our factories are fully booked through the end of December 2025," Choi added.
Outlook
Revenue for the fiscal 2026 first quarter is expected to be approximately
$38 -$40 million , pending outbound shipping port conditions.
Gross margin goal for fiscal 2026 first quarter is expected to be approximately 15-16 percent.
Fiscal 2025 Fourth Quarter Results
Fiscal 2025 fourth quarter revenue rose by 35.6 percent to
Gross profit advanced by nearly 250 percent to
Operating expenses increased by
Operating income was
Total other expenses in the fiscal 2025 fourth quarter were
Net loss was reduced to
Comprehensive loss attributable to Jerash's common stockholders totaled
Fiscal 2025 Full Year Results
Revenue for the full 2025 fiscal year increased by 24.4 percent to a record high
Gross profit for fiscal 2025 rose to
Operating expenses in fiscal 2025 were
Net loss for fiscal 2025 was reduced to
Comprehensive loss attributable to Jerash's common stockholders was
Balance Sheet, Cash Flow and Dividends
Cash and restricted cash totaled
On May 20, 2025, the board of directors of Jerash approved a regular quarterly dividend of
Conference Call
Jerash Holdings will host an investor conference call to discuss its fiscal 2025 fourth quarter and full year results today, June 23, 2025, at 9:00 a.m. Eastern Time.
Phone: 888-506-0062 (domestic); 973-528-0011 (international)
Conference ID: 944776
A live and archived webcast will be available online in the investor relations section of Jerash's website at www.jerashholdings.com. For those who are not able to listen to the live broadcast, the call will be archived for approximately one year on the website.
About Jerash Holdings (US), Inc.
Jerash Holdings (US), Inc. manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands and retailers, including VF Corporation (which owns brands such as The North Face, Timberland, and Vans), New Balance, G-III (which licenses brands such as Calvin Klein, Tommy Hilfiger, DKNY, and Guess), American Eagle, and Skechers. Jerash's existing production facilities comprise six factory units and four warehouses, and Jerash currently employs approximately 6,000 people. Additional information is available at www.jerashholdings.com.
Forward-Looking Statements
This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", "seek", "potential," "outlook" and similar expressions are intended to identify forward-looking statements. Such statements, including, but not limited to, Jerash's current views with respect to future events and its financial forecasts, and expansion of the customer base among high-profile global brands, are subject to such risks and uncertainties. Many factors could cause actual results to differ materially from the statements made, including those risks described from time to time in filings made by Jerash with the U.S. Securities and Exchange Commission. These and other risks and uncertainties are detailed in the Company's filings with the U.S. Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated or expected. Statements contained in this news release regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Jerash does not intend and does not assume any obligation to update these forward-looking statements, other than as required by law.
Contact:
PondelWilkinson Inc.
Judy Lin or Roger Pondel
310-279-5980; jlin@pondel.com
# # #
(tables below)
JERASH HOLDINGS (US), INC., AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
For the Three Months Ended March 31, | For the Fiscal Years Ended March 31, | |||||||||||||||
2025 | 2024 | 2025 | 2024 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Revenue, net | $ | 29,251,426 | $ | 21,574,454 | $ | 145,812,006 | $ | 117,187,340 | ||||||||
Cost of goods sold | 24,012,525 | 20,073,952 | 123,492,561 | 100,284,991 | ||||||||||||
Gross Profit | 5,238,901 | 1,500,502 | 22,319,445 | 16,902,349 | ||||||||||||
Selling, general and administrative expenses | 4,464,351 | 4,262,721 | 19,114,456 | 16,581,256 | ||||||||||||
Stock-based compensation expenses | 341,035 | 258,350 | 1,758,146 | 986,048 | ||||||||||||
Total Operating Expenses | 4,805,386 | 4,521,071 | 20,872,602 | 17,567,304 | ||||||||||||
Income (loss) from Operations | 433,515 | (3,020,569 | ) | 1,446,843 | (664,955 | ) | ||||||||||
Other (Expense) Income: | ||||||||||||||||
Interest expenses | (371,469 | ) | (220,440 | ) | (1,719,760 | ) | (1,203,596 | ) | ||||||||
Other income, net | 117,667 | 86,493 | 424,108 | 499,120 | ||||||||||||
Total other expense, net | (253,802 | ) | (133,947 | ) | (1,295,652 | ) | (704,476 | ) | ||||||||
Net profit (loss) before provision for income taxes | 179,713 | (3,154,516 | ) | 151,191 | (1,369,431 | ) | ||||||||||
Income tax expenses (income) | 323,808 | (16,361 | ) | 991,120 | 672,495 | |||||||||||
Net loss | (144,095 | ) | (3,138,155 | ) | (839,929 | ) | (2,041,926 | ) | ||||||||
Net (gain) loss attributable to noncontrolling interest | (8,540 | ) | 49,397 | (8,440 | ) | 36,024 | ||||||||||
Net loss attributable to Jerash Holdings (US), Inc's Common Stockholders | $ | (152,635 | ) | $ | (3,088,758 | ) | $ | (848,369 | ) | $ | (2,005,902 | ) | ||||
Net loss | $ | (144,095 | ) | $ | (3,138,155 | ) | $ | (839,929 | ) | $ | (2,041,926 | ) | ||||
Other Comprehensive Income (Loss): | ||||||||||||||||
Foreign currency translation gain (loss) | 103,670 | (313,761 | ) | (20,803 | ) | (369,090 | ) | |||||||||
Total Comprehensive Loss | (40,425 | ) | (3,451,916 | ) | (860,732 | ) | (2,411,016 | ) | ||||||||
Comprehensive (gain) loss attributable to noncontrolling interest | (8,540 | ) | 49,397 | (8,440 | ) | 36,024 | ||||||||||
Comprehensive Loss Income Attributable to Jerash Holdings (US), Inc.'s Common Stockholders | $ | (48,965 | ) | $ | (3,402,519 | ) | $ | (869,172 | ) | $ | (2,374,992 | ) | ||||
Loss Per Share Attributable to Common Stockholders: | ||||||||||||||||
Basic and diluted | $ | (0.01 | ) | $ | (0.25 | ) | $ | (0.07 | ) | $ | (0.16 | ) | ||||
Weighted Average Number of Shares | ||||||||||||||||
Basic | 12,433,363 | 12,294,840 | 12,329,021 | 12,294,840 | ||||||||||||
Diluted | 12,433,363 | 12,294,840 | 12,329,021 | 12,294,840 | ||||||||||||
Dividend per share | $ | 0.05 | $ | 0.05 | $ | 0.20 | $ | 0.20 | ||||||||
JERASH HOLDINGS (US), INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, 2025 | March 31, 2024 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash | $ | 13,346,791 | $ | 12,428,369 | ||||
Accounts receivable, net | 3,076,074 | 5,417,513 | ||||||
Inventories | 27,704,829 | 27,241,573 | ||||||
Prepaid expenses and other current assets | 3,648,321 | 2,746,068 | ||||||
Advances to suppliers, net | 6,644,194 | 3,086,137 | ||||||
Total Current Assets | 54,420,209 | 50,919,660 | ||||||
Restricted cash - non-current | 1,717,248 | 1,608,498 | ||||||
Long-term deposits | 464,934 | 802,306 | ||||||
Deferred tax assets, net | - | 158,329 | ||||||
Property, plant, and equipment, net | 25,023,681 | 24,998,096 | ||||||
Goodwill | 499,282 | 499,282 | ||||||
Operating lease right of use assets | 850,172 | 1,259,395 | ||||||
Total Assets | $ | 82,975,526 | $ | 80,245,566 | ||||
LIABILITIES AND EQUITY | ||||||||
Current Liabilities: | ||||||||
Credit facilities | $ | 4,512,462 | $ | - | ||||
Accounts payable | 6,507,308 | 6,340,237 | ||||||
Accrued expenses | 4,342,436 | 4,175,843 | ||||||
Income tax payable - current | 1,305,386 | 1,647,199 | ||||||
Uncertain tax provision | 175,290 | - | ||||||
Other payables | 2,149,185 | 2,234,870 | ||||||
Deferred revenue | 487,004 | 10,200 | ||||||
Operating lease liabilities - current | 339,699 | 370,802 | ||||||
Total Current Liabilities | 19,818,770 | 14,779,151 | ||||||
Deferred tax liabilities, net | 120 | - | ||||||
Operating lease liabilities - non-current | 287,527 | 618,302 | ||||||
Income tax payable - non-current | - | 417,450 | ||||||
Total Liabilities | 20,106,417 | 15,814,903 | ||||||
Equity | ||||||||
Preferred stock, | $ | - | $ | - | ||||
Common stock, | 12,939 | 12,534 | ||||||
Additional paid-in capital | 25,674,835 | 23,917,094 | ||||||
Treasury stock, 239,478 shares | (1,169,046 | ) | (1,169,046 | ) | ||||
Statutory reserve | 413,821 | 413,821 | ||||||
Retained earnings | 38,396,901 | 41,704,238 | ||||||
Accumulated other comprehensive loss | (513,122 | ) | (492,319 | ) | ||||
Total Jerash Holdings (US), Inc. Stockholders' Equity | 62,816,328 | 64,386,322 | ||||||
Noncontrolling interest | 52,781 | 44,341 | ||||||
Total Equity | 62,869,109 | 64,430,663 | ||||||
Total Liabilities and Equity | $ | 82,975,526 | $ | 80,245,566 | ||||
JERASH HOLDINGS (US), INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Fiscal Years Ended March 31, | ||||||||
2025 | 2024 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net loss | $ | (839,929 | ) | $ | (2,041,926 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation | 2,681,709 | 2,539,736 | ||||||
Stock-based compensation expenses | 1,758,146 | 986,048 | ||||||
Credit loss recovery, net | (17,054 | ) | (187,762 | ) | ||||
Amortization of operating lease right-of-use assets | 591,961 | 759,764 | ||||||
Uncertain tax provision | 175,290 | - | ||||||
Changes in operating assets: | ||||||||
Accounts receivable | 2,358,493 | (2,989,214 | ) | |||||
Bills receivable | - | 87,573 | ||||||
Inventories | (463,257 | ) | 5,415,260 | |||||
Prepaid expenses and other current assets | (902,253 | ) | 187,140 | |||||
Advance to suppliers | (3,558,057 | ) | (1,553,046 | ) | ||||
Deferred tax assets | 158,329 | (4,456 | ) | |||||
Changes in operating liabilities: | ||||||||
Accounts payable | 167,071 | 557,667 | ||||||
Accrued expenses | 166,593 | 1,245,310 | ||||||
Other payables | (85,685 | ) | 757,627 | |||||
Deferred revenue | 476,804 | (918,193 | ) | |||||
Operating lease liabilities | (544,616 | ) | (824,043 | ) | ||||
Income tax payable | (759,037 | ) | (1,532,944 | ) | ||||
Deferred tax liabilities | 120 | - | ||||||
Net cash provided by operating activities | 1,364,628 | 2,484,541 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Purchases of property, plant and equipment | (951,112 | ) | (1,241,226 | ) | ||||
Payments for construction of properties | (1,089,484 | ) | (3,600,948 | ) | ||||
Payment for long-term deposits | (329,326 | ) | (300,762 | ) | ||||
Net cash used in investing activities | (2,369,922 | ) | (5,142,936 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Dividend payments | (2,458,968 | ) | (2,458,968 | ) | ||||
Investment of noncontrolling interest | - | 31,365 | ||||||
Repayment from short-term loan | (14,103,935 | ) | (7,545,829 | ) | ||||
Proceeds from short-term loan | 18,616,397 | 7,545,829 | ||||||
Net cash provided by (used in) financing activities | 2,053,494 | (2,427,603 | ) | |||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND RESTRICTED CASH | (21,028 | ) | (288,738 | ) | ||||
NET INCREASE (DECREASE) IN CASH AND RESTRICTED CASH | 1,027,172 | (5,374,736 | ) | |||||
CASH, AND RESTRICTED CASH, BEGINNING OF THE YEAR | 14,036,867 | 19,411,603 | ||||||
CASH, AND RESTRICTED CASH, END OF THE YEAR | $ | 15,064,039 | $ | 14,036,867 | ||||
CASH, AND RESTRICTED CASH, END OF THE YEAR | $ | 15,064,039 | $ | 14,036,867 | ||||
LESS: NON-CURRENT RESTRICTED CASH | 1,717,248 | 1,608,498 | ||||||
CASH, END OF THE YEAR | $ | 13,346,791 | $ | 12,428,369 | ||||
Supplemental disclosure information: | ||||||||
Cash paid for interest | $ | 1,719,760 | $ | 1,203,596 | ||||
Income tax paid | $ | 1,398,684 | $ | 2,253,410 | ||||
Non-cash investing and financing activities | ||||||||
Equipment obtained by utilizing long-term deposit | $ | 667,567 | $ | 354,917 | ||||
Operating lease right of use assets obtained in exchange for operating lease obligations | $ | 186,726 | $ | 1,058,820 | ||||
SOURCE: Jerash Holdings (US), Inc.
View the original press release on ACCESS Newswire
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