Jerash Holdings Reports Fiscal 2026 Second Quarter Financial Results

FAIRFIELD, NEW JERSEY / ACCESS Newswire / November 12, 2025 / Jerash Holdings (US), Inc. (NASDAQ:JRSH) (the "Company" or "Jerash"), which manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands, today announced financial results for its fiscal 2026 second quarter ended September 30, 2025.

Fiscal 2026 Second Quarter Highlights

Revenue increased 4.3 percent to $42.0 million, from $40.2 million in the prior year quarter.

Gross margin was 15.0 percent, compared with 17.5 percent in the prior year quarter.

Operating income was $1.09 million, compared with $1.13 million in the prior year quarter.

Net income was $479,000, compared with $665,000 in the prior year quarter.

Outlook

Revenue for the fiscal 2026 third quarter is expected to increase by 19 to 21 percent over the same quarter last year.

Gross margin goal for the fiscal 2026 third quarter is approximately 13 to 15 percent.

"Amid ongoing trade uncertainties, we continue to experience growing demand from our customers, as Jordan is increasingly becoming a preferred destination for global brands seeking to diversify their manufacturing partnerships beyond Asia," said Sam Choi, Jerash's chairman and chief executive officer.

"In late June, we completed an expansion of our existing manufacturing facilities, adding approximately 15 percent to our much-needed production capacity. With increasing capacity requests from our global customers and strategic partners, we have initiated a long-term expansion plan to support anticipated growth. This includes exploring potential acquisitions and facility development on our own land to ensure that Jerash remains well-positioned to sustain our competitive edge and meet evolving market demands.

"Gross margin for the quarter was lower than that for the same period last year, which benefited from catch-up production of higher-margin outerwear originally scheduled for the first quarter of fiscal 2025. Additionally, as we successfully continue to diversify our customer base and product mix, we expect a slightly lower average gross margin in the near term. As order volumes for our expanded product offerings continue to scale, our goal is to improve gross profit margins through increased production automation and the benefits of economies of scale.

"During this important period of progress for the Company, we remain attentive to potential impacts of geopolitical uncertainties in the region and evolving tariff developments as we continue advancing our growth strategy," Choi added.

Fiscal 2026 Second Quarter Results

Revenue for the fiscal 2026 second quarter grew 4.3 percent to $42.0 million, from $40.2 million in the same quarter last year. The increase was primarily driven an increase in shipments to the U.S., resulting from a more diverse customer base in fiscal 2026.

Gross profit was $6.3 million for the fiscal 2026 second quarter, compared with $7.1 million in the same quarter last year. Gross profit margin for the quarter declined to 15.0 percent, from 17.5 percent in the same period last year, which benefited from catch-up production of some outerwear that carried higher margins originally scheduled for the first quarter of fiscal 2025. The decrease was primarily driven by the diversification of customer base and product mix, which resulted in a lower average gross margin.

Operating expenses totaled $5.2 million in the fiscal 2026 second quarter, compared with $5.9 million in the same quarter last year. The decrease was primarily due to better control of export costs and lower stock-based compensation expenses.

Operating income was $1.09 million in the fiscal 2026 second quarter, slightly lower than $1.13 million in the same quarter last year.

Total other expenses were $456,000 in the fiscal 2026 second quarter, compared with $364,000 in the same quarter last year. The increase was primarily due to the increase in financing needs to support business growth.

Income tax expenses were $154,000 in the fiscal 2026 second quarter, compared with $106,000 in the prior year quarter.

Net income was $479,000, or $0.04 per diluted share, in the fiscal 2026 second quarter, compared with $665,000, or $0.05 per diluted share, in the same quarter last year.

Comprehensive income attributable to the Company's common stockholders totaled $444,000 in the fiscal 2026 second quarter, compared with $663,000 in the same quarter last year.

Six-Month Fiscal Year 2026 Results

Revenue for the first six months of fiscal year 2026 rose to $81.6 million, from $81.2 million in the same period last year. The increase was mainly due to the increase in overall demands for most of Jerash's major customers following the Company's efforts to diversify customer base.

Gross profit increased 5.8 percent to $12.4 million for the first half of fiscal year 2026, compared with $11.7 million for the same period last year. Gross margin for the first six months of fiscal year 2026 increased to 15.2 percent, compared with 14.4 percent in the same period last year.

Operating expenses for the first six months of fiscal year 2026 were $10.3 million, compared with $11.4 million for the same period last year. Operating income increased to $2.0 million for the first six months of fiscal year 2026, compared with $306,000 for the same period last year. The improvement was mainly attributable to reduced export logistics costs, lower stock-based compensation expenses, and reduced spending on repairs and maintenance.

Total other expenses for the first six months of fiscal 2026 decreased to $763,000, compared with $790,000 for the same period last year, primarily due to lower interest expense.

Income tax expenses were $483,000 for the first six months of fiscal year 2026, compared with $218,000 for the same period in prior year.

Net income for the first six months of fiscal year 2026 was $803,000, or $0.06 per diluted share, compared with a net loss of $702,000, or $0.06 per share, in the same period last year. The increase was primarily driven by greater overall demand, improved control over import and export costs, and business growth that enabled lower average costs through economies of scale.

Comprehensive income attributable to Jerash's common stockholders was $773,000 in the first six months of fiscal year 2026, compared with comprehensive loss of $673,000 for the same period last year.

Balance Sheet, Cash Flow, and Dividends

Cash and restricted cash totaled $13.7 million, and net working capital was $35.2 million as of September 30, 2025.

On November 7, 2025, Jerash's board of directors approved a regular quarterly dividend of $0.05 per share on its common stock, payable on November 26, 2025 to stockholders of record as of November 19, 2025.

Conference Call

Jerash Holdings will host an investor conference call to discuss its fiscal 2026 second quarter results today, November 12, 2025, at 9:00 a.m. Eastern Time.

Phone: 888-506-0062 (domestic); 973-528-0011 (international)

Conference ID: 589743

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 DKNY and Nautica), Acushnet Holdings Corp (which owns the brand FootJoy), 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

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited)

For the Three Months Ended

September 30,

2025

2024

2025

2024

41,968,534

40,240,127

81,597,842

81,175,843

35,678,854

33,182,244

69,219,282

69,478,089

6,289,680

7,057,883

12,378,560

11,697,754

4,971,466

5,449,386

9,878,681

10,449,130

228,826

474,088

451,495

943,023

5,200,292

5,923,474

10,330,176

11,392,153

1,089,388

1,134,409

2,048,384

305,601

(493,482

)

(503,149

)

(849,330

)

(983,352

)

37,153

139,166

86,467

193,201

(456,329

)

(363,983

)

(762,863

)

(790,151

)

633,059

770,426

1,285,521

(484,550

)

153,756

105,877

482,588

217,598

479,303

664,549

802,933

(702,148

)

(17,698

)

(9,261

)

(22,652

)

12,220

461,605

655,288

780,281

(689,928

)

479,303

664,549

802,933

(702,148

)

(17,215

)

7,583

(7,651

)

16,496

462,088

672,132

795,282

(685,652

)

(17,698

)

(9,261

)

(22,652

)

12,220

444,390

662,871

772,630

(673,432

)

0.04

0.05

0.06

(0.06

)

12,699,940

12,294,840

12,699,940

12,294,840

13,174,524

12,460,241

13,125,459

12,294,840

0.05

0.10

JERASH HOLDINGS (US), INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

September 30,

2025

March 31,

2025

(Unaudited)

ASSETS

12,002,314

13,346,791

5,798,578

3,076,074

26,256,890

27,704,829

3,500,397

3,648,321

7,995,085

6,644,194

55,553,264

54,420,209

1,700,539

1,717,248

379,283

464,934

24,667,532

25,023,681

499,282

535,512

850,172

83,335,412

82,975,526

LIABILITIES AND EQUITY

5,176,438

4,512,462

7,755,534

6,507,308

4,075,252

4,342,436

865,161

1,305,386

175,290

1,502,010

2,149,185

691,264

487,004

314,685

339,699

20,380,344

19,818,770

120

109,056

287,527

20,489,520

20,106,417

12,939

26,126,330

25,674,835

(1,169,046

)

(1,169,046

)

413,821

37,907,188

38,396,901

(520,773

)

(513,122

)

62,770,459

62,816,328

75,433

52,781

62,845,892

62,869,109

83,335,412

82,975,526

JERASH HOLDINGS (US), INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

For the Six Months Ended September 30,

2025

2024

802,933

(702,148

)

1,506,793

1,209,053

451,495

943,023

16,768

316,722

300,559

(2,722,504

)

(392,484

)

1,447,940

7,034,774

147,924

(470,777

)

(1,350,891

)

(2,942,296

)

1,248,225

(1,945,505

)

(267,184

)

(520,948

)

(647,175

)

133,937

204,260

1,112,963

(205,547

)

(238,237

)

(614,713

)

(1,112,062

)

318,278

2,426,620

(844,401

)

(348,238

)

(270,599

)

(209,543

)

(317,386

)

(1,053,944

)

(936,223

)

(1,269,994

)

(1,229,484

)

(10,003,284

)

(5,566,040

)

10,667,260

9,136,277

(606,018

)

2,340,753

(19,502

)

16,018

(1,361,186

)

3,847,168

15,064,039

14,036,867

13,702,853

17,884,035

13,702,853

17,884,035

1,700,539

1,545,457

12,002,314

16,338,578

849,330

983,352

1,105,128

1,329,150

295,195

262,017

67,512

SOURCE: Jerash Holdings (US), Inc.