Jerash Holdings reports Q2 EPS 3c vs. 14c last year

Reports Q2 revenue $33.4M vs. $37.8M last year. “Our second quarter performance again demonstrated Jerash’s ability to attract new customers and prove our resiliency in a challenging apparel environment,” said Sam Choi, Jerash’s chairman and chief executive officer. “Retail market conditions for global brands in the U.S. and Europe have been slow to recover, which, in turn, is impacting our business compared with the prior year, with a product mix shift to lower priced items, which carry lower margins. Nevertheless, our revenue and gross margin remained largely stable. Good progress was made during the quarter with our Busana partner. Thus far, five premium customers have committed to placing orders. Current projections from the joint venture over the next twelve months call for about $8 to $9 million in new orders, starting in a meaningful way in our fiscal fourth quarter Additionally, Jerash’s initiative to diversify its own customer base is proving effective. We are continuing to receive inquiries from high-profile global brands, with new garment sampling and costing underway. We also are enthusiastic about the opportunity created by our recently established joint venture with Newtech Textile Limited, a subsidiary of Newtech Textile Technology Development Co. Limited, a textile innovation and solutions company. We are aiming to utilize technology that is expected to reduce water usage by approximately 90%, energy consumption by approximately 65%, and carbon footprint by over 50% in comparison with traditional textile dyeing processes. To achieve this, we plan to build a fabric facility in Jordan, with construction to begin in 2024, and Jerash is emerging as Jordan’s leader in ESG textile manufacturing, which is in keeping with our longstanding commitment to sustainability and responsible growth,” Choi added.