What caused JRSH's Q3 2025 earnings to fall below forecasts?

Jerash Holdings' Q3 2025 earnings fell below forecasts due to a combination of factors:

1. **Geopolitical Challenges and Shipment Delays**: Geopolitical turmoil, particularly at Israel's Haifa port, caused significant shipment delays. This resulted in approximately $6 million worth of delayed shipments being carried over to Q4. The company incurred additional costs, including port storage fees, due to these delays.
2. **Increased Costs**: Higher logistics and interest expenses, likely related to the shipment delays and geopolitical instability, impacted the company's cost structure. These increased costs were reflected in the form of higher supply chain expenses and selling, general, and administrative (SG&A) costs. The company reported a rise in cost of goods sold, which increased from $23.1 million in the prior year to $30.0 million. This increase in cost ratio, attributed to higher import costs, further squeezed the gross profit margin.
3. **Stock-Based Compensation Expenses**: The company experienced an increase in stock-based compensation expenses, which contributed to the decline in net income. This was also evident in the form of higher operating income, which surged by 88.3% to $708,000, yet net income was only $6,000.
4. **Tax Provision Adjustment**: A tax provision adjustment played a role in the decrease in net income, indicating that a portion of the earnings was set aside for tax purposes, which reduced the net profit.

In summary, Jerash Holdings' Q3 2025 earnings fell below forecasts due to a combination of geopolitical challenges, increased costs, stock-based compensation expenses, and tax provision adjustments. These factors collectively impacted the company's profitability for the period.