Jerash (US) (JRSH) Q1 2027 earnings summary

Executive summary

• Achieved record quarterly revenue of $50.2 million, up 26.7%-27% year-over-year, driven by higher shipments to major U.S. customers and a new strategic partner in Korea.

• Net income rose sharply to $1.7 million ($0.13 per diluted share), reflecting improved efficiency, automation, and higher gross margins.

• Benefited from newly announced duty-free access for Jordanian apparel exports to the U.S., enhancing competitiveness and driving increased inquiries and orders.

• Most products are sold under major U.S. brands, with the U.S. accounting for 77% of total sales.

• Operational efficiency and disciplined capacity expansion supported strong results.

Financial highlights

• Revenue for the quarter was $50.2 million, up from $39.6 million year-over-year.

• Gross profit increased 35.7% to $8.3 million; gross margin rose to 16.4% (up from 15.4%).

• Operating income surged 174% to $2.6 million; net income rose over fivefold to $1.7 million.

• Operating expenses were $5.6 million, up 10% year-over-year.

• Dividend of $0.05 per share approved and paid during the quarter.

Outlook and guidance

• Q2 revenue expected between $49 million and $51 million, with gross margin targeted at 14%-15% due to higher transportation costs.

• Management expects cash on hand and operating cash flow to be sufficient for working capital needs over the next 12 months.

• Capital expenditures are expected to increase in the next two fiscal years to support business expansion.

• Positive long-term outlook supported by trade advantages and capacity expansion, but near-term logistics and geopolitical risks remain.

• Most garment categories are exempt from new U.S. tariffs due to recent trade agreements.