Sportswear manufacturer Jerash Holdings' Q2 revenue rises 20% on higher US shipments
JRSH•Jerash Holdings' fiscal second-quarter revenue rose 20% to $50.3 million, while net income increased more than fourfold year over year. The company expects fiscal third-quarter revenue of $49 million to $51 million and gross margin of 16% to 17%.
1. Quarterly results
Jerash Holdings said fiscal second-quarter revenue rose 20% to $50.3 million, driven primarily by increased shipments to its largest US customer and other customers with orders mainly for the US. Gross margin improved to 18.2%, and net income rose more than fourfold year over year.
2. Outlook and operations
The company expects fiscal third-quarter revenue of $49 million to $51 million and gross margin of 16% to 17%, citing higher transportation costs. It said automation-related efficiency gains, advance raw material purchases and tighter controls on wastage allowances helped improve gross margin, while regional shipping disruptions and higher import transportation costs affected the quarter. Its production facilities are fully booked through June 2027, with strong order in-flow.
