Jerash Holdings Reports Fiscal 2025 Third Quarter Financial Results
Rhea-AI Summary
Jerash Holdings (NASDAQ:JRSH) reported its fiscal 2025 Q3 results with revenue increasing 28.6% to $35.4 million. Despite growth, performance was affected by port congestion issues in Haifa, causing approximately $3.8 million in shipping delays and over $100,000 in storage fees. Gross profit rose 20.6% to $5.4 million, while gross margin decreased to 15.2% from 16.2% year-over-year.
The company expects Q4 FY2025 revenue to increase by 50-53% from $21.6 million last year, with gross margins projected at 15-16%. Jerash is expanding two manufacturing facilities to increase capacity by 15% by June 2025, with additional expansion plans in Al-Hasa potentially adding 5-10% capacity by year-end. The company declared a quarterly dividend of $0.05 per share, payable February 25, 2025.
Positive
- Revenue increased 28.6% YoY to $35.4 million in Q3 FY2025
- Gross profit up 20.6% to $5.4 million
- Operating income increased 88.3% to $708,000
- Manufacturing capacity expansion of 15% expected by June 2025
- Strong Q4 guidance with 50-53% revenue growth expected
- Factories fully booked through August 2025
Negative
- Net income declined to $6,000 from $232,000 YoY
- Gross margin decreased to 15.2% from 16.2% YoY
- Operating expenses increased to $4.7 million from $4.1 million
- Net loss of $696,000 for first nine months of FY2025
- Higher logistics costs due to Middle East geopolitical issues
- Effective tax rate increased to 98.6% from 14.2% YoY
News Market Reaction 1 Alert
On the day this news was published, JRSH gained 0.55%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
FAIRFIELD, NJ / ACCESS Newswire / February 11, 2025 / Jerash Holdings (US), Inc. ("Jerash" or the "Company") (NASDAQ:JRSH), which manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands, today announced financial results for its fiscal 2025 third quarter, ended December 31, 2024.
"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
"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.
Outlook
Revenue for the fiscal 2025 fourth quarter is expected to increase by 50-53 percent, from
$21.6 million in the same quarter last year.
Revenue for the fiscal 2026 first quarter is expected to be in line with the fiscal 2025 first quarter of
$40.9 million . Fiscal 2025 first quarter revenue was record high and included approximately$3 -4 million of delayed shipments from the fiscal 2024 fourth quarter.
Gross margin goal for fiscal 2025 fourth quarter is expected to be approximately 15-16 percent, subject to logistics, shipping charges and product mix.
Fiscal 2025 Third Quarter Results
Revenue for the fiscal 2025 third quarter increased 28.6 percent to
Gross profit for the fiscal 2025 third quarter increased 20.6 percent to
Operating expenses totaled
Operating income increased 88.3 percent to
Total other expenses were
Income tax expenses for the fiscal 2025 third quarter were approximately
Net income was
Comprehensive loss attributable to the Company's common stockholders totaled
Nine-Month Fiscal Year 2025 Results
Revenue for the first nine months of fiscal year 2025 rose to
Gross profit was
Operating expenses for the first nine months of fiscal year 2025 were
Net loss for the first nine months of fiscal 2025 was
Comprehensive loss attributable to Jerash's common stockholders for the first nine months of fiscal 2025 was
Balance Sheet, Cash Flow and Dividends
Cash and restricted cash totaled
On February 5, 2025, Jerash's board of directors approved a regular quarterly dividend of
Conference Call
Jerash will host an investor conference call to discuss its fiscal year 2025 third quarter results today, February 11, 2025, at 9:00 a.m. Eastern Time.
Phone: 888-506-0062 (domestic); 973-528-0011 (international)
Conference ID: 383333
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
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
| For the Three Months Ended |
|
| For the Nine Months Ended |
| |||||||||||
| 2024 |
|
| 2023 |
|
| 2024 |
|
| 2023 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Revenue, net |
| $ | 35,384,737 |
|
| $ | 27,520,121 |
|
| $ | 116,560,580 |
|
| $ | 95,612,886 |
|
Cost of goods sold |
|
| 30,001,947 |
|
|
| 23,057,845 |
|
|
| 99,480,036 |
|
|
| 80,211,039 |
|
Gross Profit |
|
| 5,382,790 |
|
|
| 4,462,276 |
|
|
| 17,080,544 |
|
|
| 15,401,847 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selling, general and administrative expenses |
|
| 4,200,975 |
|
|
| 3,843,029 |
|
|
| 14,650,105 |
|
|
| 12,318,535 |
|
Stock-based compensation expenses |
|
| 474,088 |
|
|
| 243,448 |
|
|
| 1,417,111 |
|
|
| 727,698 |
|
Total Operating Expenses |
|
| 4,675,063 |
|
|
| 4,086,477 |
|
|
| 16,067,216 |
|
|
| 13,046,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Income from Operations |
|
| 707,727 |
|
|
| 375,799 |
|
|
| 1,013,328 |
|
|
| 2,355,614 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Other Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expenses |
|
| (364,939 | ) |
|
| (234,971 | ) |
|
| (1,348,291 | ) |
|
| (983,156 | ) |
Other income, net |
|
| 113,240 |
|
|
| 129,877 |
|
|
| 306,441 |
|
|
| 412,627 |
|
Total other expenses, net |
|
| (251,699 | ) |
|
| (105,094 | ) |
|
| (1,041,850 | ) |
|
| (570,529 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net income (loss) before provision for income taxes |
|
| 456,028 |
|
|
| 270,705 |
|
|
| (28,522 | ) |
|
| 1,785,085 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Income tax expenses |
|
| 449,714 |
|
|
| 38,535 |
|
|
| 667,312 |
|
|
| 688,856 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net income (loss) |
|
| 6,314 |
|
|
| 232,170 |
|
|
| (695,834 | ) |
|
| 1,096,229 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net gain (loss) attributable to noncontrolling interest |
|
| (12,120 | ) |
|
| (11,457 | ) |
|
| 100 |
|
|
| (13,373 | ) |
Net (loss) income attributable to Jerash Holdings (US), Inc.'s Common Stockholders |
| $ | (5,806 | ) |
| $ | 220,713 |
|
| $ | (695,734 | ) |
| $ | 1,082,856 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net income (loss) |
| $ | 6,314 |
|
| $ | 232,170 |
|
| $ | (695,834 | ) |
| $ | 1,096,229 |
|
Other Comprehensive Income (Loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation (loss) income |
|
| (140,969 | ) |
|
| 99,171 |
|
|
| (124,473 | ) |
|
| (55,329 | ) |
Total Comprehensive (Loss) Income |
|
| (134,655 | ) |
|
| 331,341 |
|
|
| (820,307 | ) |
|
| 1,040,900 |
|
Comprehensive (gain) loss attributable to noncontrolling interest |
|
| (12,120 | ) |
|
| (11,457 | ) |
|
| 100 |
|
|
| (13,373 | ) |
Comprehensive (Loss) Income Attributable to Jerash Holdings (US), Inc.'s Common Stockholders |
| $ | (146,775 | ) |
| $ | 319,884 |
|
| $ | (820,207 | ) |
| $ | 1,027,527 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Earnings/(Loss) Per Share Attributable to Common Stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted |
| $ | (0.00 | ) |
| $ | 0.02 |
|
| $ | (0.06 | ) |
| $ | 0.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Weighted Average Number of Shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| 12,294,840 |
|
|
| 12,294,840 |
|
|
| 12,294,840 |
|
|
| 12,294,840 |
|
Diluted |
|
| 12,294,840 |
|
|
| 12,294,840 |
|
|
| 12,294,840 |
|
|
| 12,294,840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Dividend per share |
| $ | 0.05 |
|
| $ | 0.05 |
|
| $ | 0.15 |
|
| $ | 0.15 |
|
JERASH HOLDINGS (US), INC.,
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
| December 31, |
|
| March 31, |
| |||
| (Unaudited) |
|
|
|
| |||
ASSETS |
|
|
|
|
|
| ||
Current Assets: |
|
|
|
|
|
| ||
Cash |
| $ | 13,219,109 |
|
| $ | 12,428,369 |
|
Accounts receivable, net |
|
| 7,237,959 |
|
|
| 5,417,513 |
|
Inventories |
|
| 19,118,133 |
|
|
| 27,241,573 |
|
Prepaid expenses and other current assets |
|
| 3,676,154 |
|
|
| 2,746,068 |
|
Advance to suppliers, net |
|
| 7,862,708 |
|
|
| 3,086,137 |
|
Total Current Assets |
|
| 51,114,063 |
|
|
| 50,919,660 |
|
|
|
|
|
|
|
|
| |
Restricted cash - non-current |
|
| 1,563,809 |
|
|
| 1,608,498 |
|
Long-term deposits |
|
| 1,109,073 |
|
|
| 802,306 |
|
Deferred tax assets, net |
|
| 158,329 |
|
|
| 158,329 |
|
Property, plant, and equipment, net |
|
| 24,394,170 |
|
|
| 24,998,096 |
|
Goodwill |
|
| 499,282 |
|
|
| 499,282 |
|
Operating lease right of use assets |
|
| 997,989 |
|
|
| 1,259,395 |
|
Total Assets |
| $ | 79,836,715 |
|
| $ | 80,245,566 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Current Liabilities: |
|
|
|
|
|
|
|
|
Credit facilities |
| $ | 4,967,944 |
|
| $ | - |
|
Accounts payable |
|
| 3,888,084 |
|
|
| 6,340,237 |
|
Accrued expenses |
|
| 3,840,591 |
|
|
| 4,175,843 |
|
Income tax payable - current |
|
| 1,128,634 |
|
|
| 1,647,199 |
|
Uncertain tax provision |
|
| 273,582 |
|
|
| - |
|
Other payables |
|
| 1,825,970 |
|
|
| 2,234,870 |
|
Deferred revenue |
|
| 58,642 |
|
|
| 10,200 |
|
Operating lease liabilities - current |
|
| 325,615 |
|
|
| 370,802 |
|
Total Current Liabilities |
|
| 16,309,062 |
|
|
| 14,779,151 |
|
|
|
|
|
|
|
|
| |
Operating lease liabilities - non-current |
|
| 344,412 |
|
|
| 618,302 |
|
Income tax payable - non-current |
|
| - |
|
|
| 417,450 |
|
Total Liabilities |
|
| 16,653,474 |
|
|
| 15,814,903 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Equity |
|
|
|
|
|
|
|
|
Preferred stock, |
| $ | - |
|
| $ | - |
|
Common stock, |
|
| 12,534 |
|
|
| 12,534 |
|
Additional paid-in capital |
|
| 25,334,205 |
|
|
| 23,917,094 |
|
Treasury stock, 239,478 shares |
|
| (1,169,046 | ) |
|
| (1,169,046 | ) |
Statutory reserve |
|
| 413,821 |
|
|
| 413,821 |
|
Retained earnings |
|
| 39,164,278 |
|
|
| 41,704,238 |
|
Accumulated other comprehensive loss |
|
| (616,792 | ) |
|
| (492,319 | ) |
Total Jerash Holdings (US), Inc.' Stockholders' Equity |
|
| 63,139,000 |
|
|
| 64,386,322 |
|
|
|
|
|
|
|
|
| |
Noncontrolling interest |
|
| 44,241 |
|
|
| 44,341 |
|
Total Equity |
|
| 63,183,241 |
|
|
| 64,430,663 |
|
|
|
|
|
|
|
|
| |
Total Liabilities and Equity |
| $ | 79,836,715 |
|
| $ | 80,245,566 |
|
JERASH HOLDINGS (US), INC.,
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
| For the Nine Months Ended |
| ||||||
| 2024 |
|
| 2023 |
| |||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
| ||
Net (loss) income |
| $ | (695,834 | ) |
| $ | 1,096,229 |
|
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: |
|
|
|
|
|
|
|
|
Depreciation |
|
| 1,968,992 |
|
|
| 1,881,853 |
|
Stock-based compensation expenses |
|
| 1,417,111 |
|
|
| 727,698 |
|
Credit loss recovery |
|
| (17,054 | ) |
|
| (187,762 | ) |
Amortization of operating lease right-of-use assets |
|
| 447,646 |
|
|
| 601,727 |
|
Uncertain tax provision |
|
| (273,582 | ) |
|
| - |
|
|
|
|
|
|
|
|
| |
Changes in operating assets: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
| (1,803,392 | ) |
|
| (6,044,375 | ) |
Bills receivable |
|
| - |
|
|
| (64,614 | ) |
Inventories |
|
| 8,123,439 |
|
|
| 16,719,185 |
|
Prepaid expenses and other current assets |
|
| (930,084 | ) |
|
| 350,324 |
|
Advance to suppliers |
|
| (4,776,571 | ) |
|
| (1,111,017 | ) |
Changes in operating liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
| (2,452,154 | ) |
|
| (3,380,984 | ) |
Accrued expenses |
|
| (335,251 | ) |
|
| (32,390 | ) |
Other payables |
|
| (408,900 | ) |
|
| 142,393 |
|
Deferred revenue |
|
| 48,442 |
|
|
| (927,488 | ) |
Operating lease liabilities |
|
| (505,317 | ) |
|
| (460,508 | ) |
Income tax payable |
|
| (388,766 | ) |
|
| (1,443,317 | ) |
Net cash (used in) provided by operating activities |
|
| (581,275 | ) |
|
| 7,866,954 |
|
|
|
|
|
|
|
|
| |
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
Purchases of property, plant, and equipment |
|
| (491,676 | ) |
|
| (824,305 | ) |
Payments for construction of properties |
|
| (585,715 | ) |
|
| (3,158,501 | ) |
Payment for long-term deposits |
|
| (594,442 | ) |
|
| (281,153 | ) |
Net cash used in investing activities |
|
| (1,671,833 | ) |
|
| (4,263,959 | ) |
|
|
|
|
|
|
|
| |
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
Dividend payments |
|
| (1,844,226 | ) |
|
| (1,844,226 | ) |
Investment of noncontrolling interest |
|
| - |
|
|
| 31,365 |
|
Repayment from short-term loan |
|
| (9,288,656 | ) |
|
| (4,937,633 | ) |
Proceeds from short-term loan |
|
| 14,256,600 |
|
|
| 4,937,633 |
|
Net cash provided by (used in) financing activities |
|
| 3,123,718 |
|
|
| (1,812,861 | ) |
|
|
|
|
|
|
|
| |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND RESTRICTED CASH |
|
| (124,559 | ) |
|
| 24,677 |
|
|
|
|
|
|
|
|
| |
NET INCREASE IN CASH AND RESTRICTED CASH |
|
| 746,051 |
|
|
| 1,814,811 |
|
|
|
|
|
|
|
|
| |
CASH, AND RESTRICTED CASH, BEGINNING OF THE PERIOD |
|
| 14,036,867 |
|
|
| 19,411,603 |
|
|
|
|
|
|
|
|
| |
CASH, AND RESTRICTED CASH, END OF THE PERIOD |
| $ | 14,782,918 |
|
| $ | 21,226,414 |
|
|
|
|
|
|
|
|
| |
CASH AND RESTRICTED CASH, END OF THE PERIOD |
| $ | 14,782,918 |
|
| $ | 21,226,414 |
|
LESS: NON-CURRENT RESTRICTED CASH |
|
| 1,563,809 |
|
|
| 1,608,784 |
|
CASH, END OF THE PERIOD |
| $ | 13,219,109 |
|
| $ | 19,617,630 |
|
|
|
|
|
|
|
|
| |
Supplemental disclosure information: |
|
|
|
|
|
|
|
|
Cash paid for interest |
| $ | 1,348,291 |
|
| $ | 983,156 |
|
Income tax paid |
| $ | 1,329,150 |
|
| $ | 2,163,732 |
|
|
|
|
|
|
|
|
| |
Non-cash investing and financing activities |
|
|
|
|
|
|
|
|
Equipment obtained by utilizing long-term deposit |
| $ | 289,451 |
|
| $ | 355,160 |
|
Operating lease right of use assets obtained in exchange for operating lease obligations |
| $ | 186,726 |
|
| $ | 177,068 |
|
SOURCE: Jerash Holdings (US), Inc.
View the original press release on ACCESS Newswire
FAQ
What was Jerash Holdings (JRSH) revenue growth in Q3 FY2025?
How much manufacturing capacity expansion is JRSH planning for 2025?
What is JRSH's Q4 FY2025 revenue guidance?
How did port congestion affect JRSH's Q3 FY2025 performance?
What dividend did JRSH declare for Q3 FY2025?
