Jerash Holdings Reports Q1 2026 Earnings Call Highlights: Revenue Down, Profitability Up

Jerash Holdings (US) Inc reported Q1 2026 revenue of $39.6 million, down from $40.9 million in the same quarter last year. However, gross profit increased 31.2% to $6.1 million, and gross margin improved to 15.4% from 11.3% last year. Operating income reached $959,000, compared to an operating loss of $829,000 in the same period last year. Net income was $324,000, compared to a net loss of $1.4 million last year. The company expects revenue to be approximately $40 million to $42 million and gross margin to be around 15% to 16% in Q2.

Jerash Holdings (US) Inc (NASDAQ:JRSH) reported its Q1 2026 financial results, showing a mixed performance with revenue declining but significant improvements in gross profit and gross margin. The company's revenue for the quarter was $39.6 million, down from $40.9 million in the same period last year [1]. Despite this, gross profit increased by 31.2% to $6.1 million, and gross margin improved to 15.4% from 11.3% last year [1]. Operating income reached $959,000, compared to an operating loss of $829,000 in the same period last year [1].

The company's net income was $324,000, a significant turnaround from the net loss of $1.4 million in the same quarter last year [1]. This improvement can be attributed to the successful completion of the first phase of a major initial order from a large U.S.-based multinational retailer, indicating strong demand and successful strategic collaborations [1].

Jerash Holdings expects revenue to be approximately $40 million to $42 million and gross margin to be around 15% to 16% in Q2 2026 [1]. The company's facilities are fully booked through February 2026, and it is evaluating longer-term expansion plans, including a potential five-year expansion plan with a major customer [2].

However, the company faces challenges such as shipment delays, ongoing geopolitical instability in the region, and the impact of the 15% U.S. tariff on products from Jordan [1]. Despite these challenges, the company's stock rose by 3.05% in pre-market trading, suggesting investor confidence in the company's strategic initiatives and future growth potential [2].

References:

[1] https://ca.finance.yahoo.com/news/jerash-holdings-us-inc-jrsh-070903959.html
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-jerash-holdings-q1-2026-misses-eps-stock-rises-93CH-4185464