US' Jerash Holdings posts revenue of $68.1 mn in H1 FY24

16 Nov '23

2 min read

Pic: Jerash Holdings

Insights

American company Jerash Holdings saw a decline in H1 FY24 revenue to $68.1 million from $71.3 million in the previous year.
Gross profit also decreased to $10.9 million, with a reduction in gross margin from 19 per cent to 16.1 per cent.
Operating expenses rose slightly, leading to a lower operating income of $2 million and a net income of $864 thousand.

Jerash Holdings, a US-based company that manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands, has reported revenue of $68.1 million in the first half of fiscal 2024 (H1 FY24), showing a decline from the $71.3 million recorded in the same period last year.

Gross profit followed a similar trend, decreasing to $10.9 million from $13.5 million in the same period last year. This decline in profitability is further highlighted by a drop in gross margin from 19.0 percent last year to 16.1 percent this year, the company said in a press release.

Operating expenses for H1 FY24 slightly increased to $9.0 million, up from $8.6 million in the previous year. This led to a significant reduction in operating income, which fell to $2 million, compared to $4.9 million in the same period last year. Net income also saw a substantial decrease, standing at $864 thousand, or $0.07 per diluted share, a stark contrast to the $3.5 million, or $0.28 per diluted share, reported in the prior year.

The second quarter fiscal 2024 (Q2 FY24) also reflected similar challenges. Revenue for the quarter was reported at $33.4 million, down from $37.8 million in the same quarter last year. Gross profit and margin also witnessed declines, with the former at $5.4 million compared to $6.9 million last year, and the latter at 16.1 percent, down from 18.3 percent.

Operating expenses for the quarter totalled $4.5 million, with selling, general and administrative expenses slightly lower than the previous year. Operating income for the quarter was recorded at $888 thousand, a decrease from $2.6 million in the same quarter last year. Net income for Q2 FY24 was $369 thousand, or $0.03 per diluted share, again falling short of the $1.8 million, or $0.14 per diluted share, reported in the same quarter of the previous 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 US 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.

Fibre2Fashion News Desk (DP)

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