Jerash Holdings ( (JRSH) ) has released its Q2 earnings. Here is a breakdown of the information Jerash Holdings presented to its investors.
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Jerash Holdings (US), Inc. is a manufacturer and exporter of custom, ready-made sportswear and outerwear for leading global brands, operating in the apparel industry with a focus on diversifying its manufacturing partnerships beyond Asia.
In its fiscal 2026 second quarter, Jerash Holdings reported a revenue increase of 4.3% to $42.0 million, despite a decline in net income to $479,000 from $665,000 in the previous year. The company highlighted ongoing demand growth, particularly from the U.S., and emphasized its strategic expansion efforts.
Key financial metrics for the quarter included a gross margin of 15.0%, down from 17.5% the previous year, and operating income of $1.09 million, slightly lower than the $1.13 million recorded last year. The company attributed the margin decline to a diversified customer base and product mix, while operating expenses decreased due to better control of export costs and lower stock-based compensation.
Looking ahead, Jerash Holdings anticipates a revenue increase of 19 to 21% in the fiscal 2026 third quarter, with a gross margin target of 13 to 15%. The company is focused on expanding production capacity and exploring potential acquisitions to support growth, while also addressing geopolitical uncertainties and tariff developments.
Jerash Holdings remains committed to sustaining its competitive edge by leveraging increased production automation and economies of scale, aiming to enhance gross profit margins as order volumes grow.