US' Jerash Holdings' revenue drops to $27.5 million in Q3FY24

In the third quarter, the company registered gross profit of $4.5 million, compared with $5.8 million in the same quarter last year. Gross margin improved 270 basis points to 16.2 per cent in the third quarter, from 13.5 per cent in the same quarter last year. The increase was primarily due to improved product mix, with a larger proportion of shipments to the company's major US customers that generate higher margins.

Operating expenses were reduced to $4.1 million in the third quarter of fiscal 2024, from $4.5 million in the same quarter last year. Selling, general and administrative expenses also were lower, at $3.8 million, compared with $4.5 million in the same quarter last year. Stock-based compensation expenses in the third quarter were $243,000, compared with none in the same quarter last year, the company said in a press release.

"The ongoing tension in the region presented supply chain issues, causing delays, but not cancellations, and curtailing production during the quarter," said Sam Choi, Jerash's chairman and chief executive officer. "While revenue was significantly down compared with the prior year period, we achieved profitability for the quarter and continued to make good progress attracting a fresh pipeline of orders from new customers representing established global brands.

"We are excited about our growth opportunity in Europe, having recently attracted another European-based high-end apparel brand for which we have begun to produce several trial orders. In addition, Vans and Dickies, both VF Corporation brands, placed trial orders for both the US and European markets. These are all positive indicators for the future,” explained Choi.

"While our new customers and the eventual shipment of delayed orders bode well for Jerash's longer term future performance, it would be imprudent at this time to provide formal guidance on what to expect for the current quarter because of the ongoing geopolitical uncertainty. The ministry of foreign affairs of Jordan has reassured our team that the government is proactive in maintaining a safe and stable environment for businesses and providing protection for export sea routes. We are grateful that day-to-day life in Jordan remains normal. Our hearts go out to the innocent victims on all sides of the crisis, and we pray for an expeditious resolution," Choi added.

ALCHEMPro News Desk (RR)