Jerash (JRSH) Q3 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Tue, February 10, 2026 astatine 9:51 AM CST 22 min read

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Tuesday, Feb. 11, 2025 astatine 9:00 a.m. ET

• Chief Executive Officer — Lin Choi

• Chief Operating Officer, Jordan — Eric Tang

• Chief Financial Officer — Gilbert Kwong-Yiu Lee

Lin Choi: Thank you, Roger. Our concern is continuing to summation traction with expanding inquiries from caller and existing customers, that are looking to adhd manufacturing partners successful tariff-free countries, specified arsenic Jordan. Our fiscal 3rd 4th gross accrued by astir 30%, yet results were little than primitively anticipated. Sales were interaction by congestion astatine Israel Haifa Port owed to further geopolitical turmoil successful the region, which caused agelong delays successful shipments. We estimated that adjacent to 6 cardinal of finished goods were not shifted until aboriginal successful the fiscal 4th quarter. Nevertheless, we are pleased to study that export commercialized rules since precocious January has markedly improved. And water containers are being shipped successful a much timely manner.

We are hopeful that stableness successful our operating situation volition continue, and we are anxious to resume our absorption connected growth. On the caller concern front, we are encouraged by increasing involvement from planetary apparel companies, including good recognized brands successful Europe and the Persian Gulf region. This supports Jerash extremity of diversifying our lawsuit basal and expanding merchandise mix. Our optimism further reflects caller possibilities successful today's environment. Based connected the competitory vantage for companies doing concern successful Jordan, combined with Jerash agelong past and estimation for prime built implicit the past 20-plus years successful the industry. We bash judge we are successful an fantabulous presumption to seizure greater opportunities successful the years ahead.

To enactment anticipated growth, we precocious started expanding 2 of our existing manufacturing facilities with expectations of being completed by June of this year. The expansions, we accrued our processing capableness by 15%. Separately, we are actively moving with the Jordanian authorities to grow our existing facilities successful Al-Hasa, which by the extremity of this calendar year, could adhd an further 5% to 10% of accumulation capacity. And we besides are assessing semipermanent larger-scale enlargement plans. Eric Tang, who is successful complaint of our cognition successful Jordan volition stock much astir that shortly. And I volition present crook the telephone implicit to him. Eric?

Eric Tang: Thank you, Sam. Jordan remains unafraid and unchangeable arsenic a country, but the broader geopolitical concern successful the region, has impacted our concern since October 2023, particularly with respect to some import and export shipping logistics. During the past quarter, we again experienced export shipping delays of up to 4 weeks astatine the Haifa Port. By precocious January, however, the larboard congestion has overmuch improved. And today, conditions are fundamentally backmost to normal, and water containers are being shipped without undue delay. I americium besides blessed to study that our factories are afloat booked done August this year, and orders from our planetary marque customers are expanding steadily.