JRSH

This article first appeared on GuruFocus. Revenue: Fiscal Q1 2027 revenue grew 26.7% to $50.2 million, up from $39.6 million in the prior-year quarter. Gross Profit: Increased 35.7% to $8.3 million, compared with $6.1 million in the same quarter last year. Gross Margin: Improved 100 basis points to 16.4%, up from 15.4% in the prior-year period. Operating Expenses: Totaled $5.6 million in fiscal Q1 2027, compared with $5.1 million in the same quarter last year. Operating Income: Rose 174% to $2.6 million, from $959,000 in the prior-year quarter. Net Income: Advanced more than fivefold to $1.7 million, or $0.13 per diluted share, compared with $324,000, or $0.03 per diluted share, in the same quarter last year. Cash and Working Capital: Cash, cash equivalents, and restricted cash totaled $14.5 million, with net working capital of $38.1 million as of June 30, 2026. Inventory and Accounts Receivable: Inventory was $26.6 million, and accounts receivable amounted to $5.9 million. Operating Cash Flow: Net cash provided by operating activities was $2.5 million for the three months ended June 30, 2026, compared with net cash used of $6.5 million in the prior-year period. Dividend: Board approved a regular quarterly dividend of $0.05 per share, payable on August 24, 2026. Q2 Fiscal 2027 Guidance: Revenue expected to be approximately $49 million to $51 million, with gross margin targeted at approximately 14% to 15%. Warning! GuruFocus has detected 11 Warning Signs with JRSH. Is JRSH fairly valued? Test your thesis with our free DCF calculator. Release Date: August 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record fiscal first quarter revenue of $50.2 million, up 26.7% year-over-year, driven by higher shipments to major US customers and the strategic partner Hanson Group. Gross margin improved by 100 basis points to 16.4%, supported by higher-margin US shipments and efficiency gains from automation. Net income surged more than fivefold to $1.7 million ($0.13 per diluted share) from $324,000 in the prior year period. Newly announced duty-free access for Jordanian apparel exports to the US strengthens Jerash Holdings (US) Inc (NASDAQ:JRSH)'s competitive position and is attracting new customer inquiries and orders. Expansion plans are on track, including adding 15% production capacity by end of calendar 2026 and a second phase targeting 20-25% more capacity by mid-2027, supported by new orders from customers like Urban Outfitters. Geopolitical conflict in the Middle East is causing periodic delays in export shipments out of Haifa Ports and increasing transportation costs for raw materials imported from Asia. Increased transportation costs for raw material imports are expected to pressure gross margins, with the fiscal 2027 second quarter margin target lowered to approximately 14% to 15%. Total other expenses rose to $546,000 from $307,000, driven by higher interest expenses from supply chain financing programs and letters of credit for raw material purchases. Operating expenses increased to $5.6 million from $5.1 million due to higher sales volume and increased headcount and related expenses. Near-term revenue guidance for the fiscal 2027 second quarter ($49 million to $51 million) is subject to logistics and efficiency challenges amid ongoing geopolitical uncertainties. Q: With the announcement of the duty-free access, have you seen any inbound orders from potentially new customers, and what capacity would you need to bring online to handle them?A: Gilbert Lee (CFO) confirmed a significant increase in inquiries and purchase orders following the announcement. Eric Tang (Head of Operations, Jordan) noted that the company's largest customer has projected a 15% increase in orders for the coming season, and Jordan has become the most competitive manufacturing hub, attracting many new importers. Ringo Ng (Head of Marketing) added that they have successfully opened new customers like Urban Outfitters, forecasting $5 million in first-year orders, and are waiting on three other brands (Lee, Wrangler, and Reebok) due to the competitive pricing enabled by the zero-duty status. Q: Can you discuss the product mix and the potential for gross margins to rebound above 15% in the second half of the year with these new orders?A: Gilbert Lee (CFO) stated that while the company aims for higher gross margins through improved efficiency and sourcing, new customers typically come with a period of lower margins until production ramps up. He highlighted that gross margin faces two opposing forces: improvements from productivity and higher-ASP products versus increased raw material costs due to logistics interruptions from the regional conflict. The company is monitoring the situation and seeking alternatives to control costs. Q: What were the key drivers behind the record revenue and significant profitability increase in the fiscal first quarter?A: Sam Choi (CEO) reported record revenue of over $15 million, a 26.7% increase year-over-year, driven by increased order volumes from the two largest US customers and continued contributions from strategic partner Hanson Group in Korea. The company also benefited from improved gross margins and operational efficiency, leading to a more than fivefold increase in net income to $1.7 million. Q: What is the status of the company's capacity expansion plans?A: Eric Tang (Head of Operations, Jordan) detailed a two-phase expansion. Phase one is on target to add 15% production capacity by the end of calendar year 2026, with 500 additional workers. Phase two involves repurposing a recently acquired facility into a smart warehouse and cutting operation, adding 500 new sewing machines and approximately 1,100 workers, expected to increase capacity by 20-25% by mid-calendar year 2027. Additionally, a second satellite factory is being expanded to increase capacity by 5% and add up to 250 local jobs. Q: How is the company navigating the geopolitical challenges in the Middle East?A: Eric Tang (Head of Operations, Jordan) acknowledged that export shipments from Haifa Ports are experiencing periodic delays and transportation costs for raw materials from Asia have increased since the conflict resumed in July. The company is working closely with customers and suppliers, using production flexibility to mitigate disruptions and maintain reliable delivery schedules. Q: What are the financial expectations for the fiscal 2027 second quarter?A: Gilbert Lee (CFO) provided guidance for Q2 fiscal 2027, expecting revenue of approximately $49 million to $51 million, subject to logistics efficiency amid geopolitical uncertainties. The gross margin target is expected to be approximately 14% to 15%, taking into consideration increased transportation costs for raw material imports. Q: What is the progress on the product development with the large government conglomerate?A: Eric Tang (Head of Operations, Jordan) stated that additional product development through another large government conglomerate is progressing towards its final stage, with order placements for a well-known global brand anticipated in the near term. If completed as anticipated, these orders could further support growth momentum in fiscal 2027. Q: What were the main drivers of the increase in operating expenses and other expenses?A: Gilbert Lee (CFO) explained that operating expenses increased to $5.6 million from $5.1 million, primarily due to higher sales volume and increased headcount. Total other expenses rose to $546,000 from $307,000, mainly due to higher interest expenses from supply chain financing programs used by two major customers and letters of credit for raw material purchases to support growing business from Hansoll. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

-- Record Revenue and Strong Profitability -- FAIRFIELD, NJ / ACCESS Newswire / August 10, 2026 / Jerash Holdings (US), Inc. (NASDAQ:JRSH) (the "Company" or "Jerash"), which manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands, today announced financial results for its fiscal 2027 first quarter ended June 30, 2026. Fiscal 2027 First Quarter Highlights Record revenue of $50.2 million, up 26.7 percent from $39.6 million in the prior year quarter Gross profit of $8.3 million, up 35.7 percent, from $6.1 million in the prior year quarter Gross margin of 16.4 percent, up 100 basis points, from 15.4 percent in the prior year quarter Operating income of $2.6 million, up 174.4 percent, from $959,000 in the prior year quarter Net income advanced more than fivefold to $1.7 million, from $324,000 in the prior year quarter. Outlook Revenue for the fiscal 2027 second quarter is expected to be approximately $49 million-$51 million, subject to logistics efficiency amid geopolitical uncertainties. Gross margin goal for fiscal 2027 second quarter is expected to be approximately 14-15 percent, taking into effect of increased transportation costs for raw material imports. "We are pleased to report a quarter of exceptional financial performance, highlighted by record revenue, improved gross margins, and a significant increase in profitability," said Sam Choi, Jerash's chief executive officer. "These results, in part, demonstrate the advantage of our Jordan-based manufacturing platform, along with effective execution on delivery and quality, as we expand production capacity to meet growing customer demand. "Additionally, we are encouraged by recent trade developments that further strengthen our competitive position. The newly announced duty-free access for Jordanian apparel and textile exports to the U.S. reinforces Jerash's position as a preferred manufacturing source for global brands and retailers. We believe this favorable trade condition will support future growth, help attract new business opportunities, and enhance our ability to deliver long-term value to customers and shareholders. "While our outlook remains positive, we are closely monitoring geopolitical developments in the Middle East that could affect near-term regional market conditions on export logistics and increased transportation costs for raw materials coming in from Asia. Nevertheless, we believe our attractiveness in the marketplace and our strong customer relationships position us well to navigate a dynamic environment," Choi added. Fiscal 2027 First Quarter Results Revenue for the fiscal 2027 first quarter increased 26.7 percent to $50.2 million, compared with $39.6 million in the same quarter last year. The increase was primarily driven by higher shipments to the two major U.S. customers, as well as continuous contributions from the Company's strategic partner in Korea. Gross profit increased 35.7 percent to $8.3 million for the fiscal 2027 first quarter, from $6.1 million in the same quarter last year. Gross profit margin for the quarter increased 100 basis points to 16.4 percent, from 15.4 percent in the same period last year. The improvement was primarily driven by higher volume of shipments to U.S. customers that typically generate stronger margins, as well as improved efficiency gains from automation. Operating expenses totaled $5.6 million in the fiscal 2027 first quarter, compared with $5.1 million in the same quarter last year. The increase was primarily attributable to higher sales volume, as well as increased headcount and related expenses. Operating income increased 174.4 percent to $2.6 million in the fiscal 2027 first quarter, from $959,000 in the same period last year. Total other expenses were $546,000 in the fiscal 2027 first quarter, compared with $307,000 in the same quarter last year. The increase was primarily attributable to higher interest expense associated with supply chain financing programs used by two major customers, which enable the Company to receive early payments, as well as letter of credit financing for raw material purchases supporting growth in business of the Company's strategic partner in Korea Income tax expenses were $404,000 in the fiscal 2027 first quarter, compared with $329,000 in the same quarter last year. Net income advanced more than fivefold to $1.7 million, or $0.13 per diluted share, in the fiscal 2027 first quarter, compared with $324,000, or $0.03 per diluted share, in the same quarter last year. Comprehensive income attributable to the Company's common stockholders totaled $1.7 million in the fiscal 2027 first quarter, compared with $328,000 in the same period last year. Balance Sheet, Cash Flow, and Dividends Cash, cash equivalents and restricted cash totaled $14.1 million, and net working capital was $38.1 million as of June 30, 2026. On August 7, 2026, Jerash's board of directors approved a regular quarterly dividend of $0.05 per share on its common stock, payable on August 24, 2026 to stockholders of record as of August 17, 2026. Conference Call Jerash Holdings will host an investor conference call to discuss its fiscal 2027 first quarter results today, August 10, 2026, at 9:00 a.m. Eastern Time. Phone: 888-506-0062 (domestic); 973-528-0011 (international) Conference ID: 479775 A live and archived webcast will be available online in the investor relations section of Jerash's website at www.jerashholdings.com. For those who are not able to listen to the live broadcast, the call will be archived for approximately one year on the website. About Jerash Holdings (US), Inc. Jerash Holdings (US), Inc. manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands and retailers, including VF Corporation (which owns brands such as The North Face, Timberland, and Vans), New Balance, G-III (which licenses brands such as Calvin Klein, Tommy Hilfiger, and Nautica), Urban Outfitters, American Eagle, and Acushnet Holdings Corp (which owns the brand FootJoy). Jerash's existing production facilities in Jordan comprise eight factory units and six warehouses, and Jerash currently employs approximately 6,600 people. Additional information is available at www.jerashholdings.com. Forward-Looking Statements This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", "seek", "potential," "outlook" and similar expressions are intended to identify forward-looking statements. Such statements, including, but not limited to, Jerash's current views with respect to future events and its financial forecasts, and expansion of the customer base among high-profile global brands, are subject to such risks and uncertainties. Many factors could cause actual results to differ materially from the statements made, including those risks described from time to time in filings made by Jerash with the U.S. Securities and Exchange Commission. These and other risks and uncertainties are detailed in the Company's filings with the U.S. Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated or expected. Statements contained in this news release regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Jerash does not intend and does not assume any obligation to update these forward-looking statements, other than as required by law.   Contact:PondelWilkinson Inc.Judy Lin or Roger Pondel310-279-5980; [email protected] # # # (tables below)   JERASH HOLDINGS (US), INC., AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited)   JERASH HOLDINGS (US), INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS   JERASH HOLDINGS (US), INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited) SOURCE: Jerash Holdings (US), Inc. View the original press release on ACCESS Newswire

Interested in Jerash Holdings (US), Inc.? Here are five stocks we like better. Strong Q1 fiscal 2027 results: Revenue increased 26.7% to $50.2 million, gross margin expanded to 16.4%, and net income more than quintupled to $1.7 million, or $0.13 per diluted share. Growth opportunities are expanding: Higher projections from VF Corp., a new Urban Outfitters relationship, additional Hansol orders and potential global-brand business are supporting demand. Jerash also plans significant capacity expansion through 2027. Logistics remain a near-term risk: Regional conflict is delaying exports and increasing raw-material transportation costs. The company expects second-quarter revenue of $49 million to $51 million and gross margin of approximately 14% to 15%. Jerash Holdings (US) (NASDAQ:JRSH) reported higher revenue, expanding gross margin and a more than fivefold increase in net income for its fiscal 2027 first quarter, as shipments to its two largest U.S. customers increased and its Korean strategic partner continued to contribute to sales. Chief Financial Officer Gilbert Lee said quarterly revenue rose 26.7% to $50.2 million from $39.6 million a year earlier. Chief Executive Officer Sam Choi described the period as one of “exceptional financial performance,” citing record revenue, improved margins and higher profitability. → MarketBeat Week in Review – 08/03 - 08/07 Gross profit increased 35.7% to $8.3 million, while gross margin expanded by 100 basis points to 16.4%. Lee attributed the margin improvement primarily to a larger mix of shipments to U.S. customers, which he said generally carry stronger margins, as well as efficiency gains from automation. Operating income climbed 174% to $2.6 million from $959,000 in the prior-year quarter. Net income rose to $1.7 million, or $0.13 per diluted share, compared with $324,000, or $0.03 per diluted share, a year earlier. → Quantum Earnings Week: Winners and Losers Are Finally Emerging Management said a recently announced duty-free arrangement for Jordanian apparel and textile exports to the United States has increased inquiries and purchase orders. Choi said the trade development strengthens the company’s competitive position, while Eric Tang, who leads Jerash’s Jordan operations, said the agreement reinforces the benefits of the original 2001 free-trade agreement. Tang said the company received additional orders from Hansol Group, including expanded product categories and higher unit selling prices. He also said product development with another large garment conglomerate was nearing its final stage, with orders for a global brand anticipated in the near term. Those orders, if completed, could support fiscal 2027 growth, according to Tang. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War During the question-and-answer session, Tang said Jerash’s largest customer, VF Corp., had provided projections for the coming season that were about 15% above the prior season. Ringo Ng, the company’s head of marketing, said Jerash had opened Urban Outfitters as a customer and forecast approximately $5 million of business in the first year. Ng also cited potential opportunities with Lee, Wrangler, Reebok and The North Face, including higher-value outerwear products. Jerash is targeting approximately 15% additional production capacity by the end of calendar 2026 through expansion of two existing facilities, including new production lines and 500 additional workers. A second phase, targeted for around mid-calendar 2027, is expected to add another 20% to 25% of capacity through a smart warehouse and cutting operation, additional production lines, 500 sewing machines and automation, supported by roughly 1,100 additional workers. A satellite factory opened in March 2026 currently supports 130 local jobs. Jerash plans to expand that site to as many as 250 workers, with an estimated 5% increase in overall production capacity by the end of fiscal 2027. The company is also working with Jordan’s Ministry of Labour on a third satellite factory that could create about 500 jobs. Management said regional conflict has created periodic export-shipment delays from Haifa ports and raised transportation costs for raw materials imported from Asia. Lee said higher other expenses during the quarter reflected increased interest expense tied to supply-chain financing programs used by two major customers and letters of credit for raw-material purchases supporting Hansol-related business. Choi said the company is seeking to improve productivity, sourcing and product mix, but cautioned that new customers and products can initially carry lower margins as production ramps. He also said logistics interruptions and higher raw-material transportation costs remain an uncertainty. For the fiscal 2027 second quarter, Jerash expects revenue of approximately $49 million to $51 million, subject to logistics efficiency amid geopolitical uncertainty. The company’s gross-margin target is approximately 14% to 15%, reflecting higher transportation costs for imported raw materials. As of June 30, 2026, cash equivalents and restricted cash totaled $14.5 million, net working capital was $38.1 million, inventory was $26.6 million, and accounts receivable were $5.9 million. Operating cash flow was $2.5 million for the three months ended June 30, compared with $6.5 million of cash used in operations a year earlier. Jerash’s board approved a quarterly dividend of $0.05 per common share, payable Aug. 24 to shareholders of record as of Aug. 17. Jerash Holdings (NASDAQ:JRSH) is a global designer, manufacturer and marketer of intimate apparel, sportswear and swimwear. Founded in 1994 in the Jerash special economic zone of Jordan, the company has built a vertically integrated production model that spans product design, raw material sourcing, fabric printing, sewing and finishing. By controlling each stage of the manufacturing process, Jerash maintains strict quality standards and achieves competitive lead times for its apparel collections. Operating state-of-the-art facilities in Jordan with a workforce of more than 10,000 employees, Jerash produces both proprietary brands and private-label merchandise for major retailers. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Jerash Holdings (US) Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Record full-year revenue was driven by robust demand from long-standing key customers and increasing contributions from newer strategic partners like Hansel Group. Profitability improvements were supported by enhanced production capabilities, increased automation, and economies of scale that enabled a more balanced sales profile. The company is successfully diversifying its customer base and product mix to support stable year-round production and mitigate historical seasonality impacts. Operational resilience was demonstrated by maintaining export shipments through the Aqaba and Haifa ports despite regional uncertainties and holiday-related labor disruptions. Management is utilizing a phased, capital-efficient expansion strategy focused on renovating existing facilities and optimizing warehouse capacity rather than single-site concentration. Strategic collaboration with the Jordan Ministry of Labor on satellite factories is enhancing local employment while providing cost-competitive, skilled labor for production growth. First-quarter fiscal 2027 revenue is projected to grow 20% to 22% year-over-year, with gross margin targets set between 15% and 17%. Production facilities are fully booked through December 2026, with approximately 80% of projected volume already under confirmed orders. A multi-phase expansion aims to increase production capacity by 15% by late 2026 and an additional 20% to 25% by mid-2027 through facility conversions and automation. The long-term strategic objective is to double total production capacity over the next few years to support broader customer acquisition and top-line growth. Future growth remains contingent on capacity availability, with management prioritizing a controlled expansion that avoids disrupting current operations. Operating expenses as a percentage of revenue fell by nearly five percentage points to 11.7%, reflecting improved control over export logistics and lower stock-based compensation. Tariff changes have not materially impacted the bottom line as these costs are primarily borne by the company's customers. Regional geopolitical tensions led to initial conservative guidance, but operations remained stable with ports functioning normally throughout the quarter. The transition of a newly acquired facility into a centralized warehouse is expected to further optimize operational efficiency and logistics. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management declined to project the full-year growth rate, citing capacity as the primary limiting factor for production and sales. While the first quarter is solid, the customer and product mix remains subject to potential changes starting as early as the second quarter of fiscal 2027. Facilities are planned according to customer requirements and projections, with 80% already confirmed as orders. Management noted that historically, 99% of customer projections convert into exact purchase orders within 30 to 60 days of production. Following an initial 3 million unit order, Jerash received two follow-up orders, including a repeat 3 million unit order for 'Season 1' and a new 1.3 million unit order for a different style. Despite being basic styles, these orders carry 'very good' margins due to high production efficiency and economies of scale. The 80 basis point year-over-year decline was attributed to a different product mix compared to the prior year's fourth quarter., which had concentrated on higher-margin VF orders due to port congestion. Current margins reflect a more normalized production environment and better management of Ramadan-related labor disruptions compared to fiscal 2025.

Image source: The Motley Fool. Monday, June 15, 2026 at 9 a.m. ET Chairman and Chief Executive Officer — Sam Choi Chief Financial Officer — Gilbert Lee Operations Lead, Jordan — Eric Tang Operator Greetings. Welcome to the Jerash Holdings fiscal 2026 fourth quarter and full-year financial results. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Roger Pondel, Investor Relations for Jerash Holdings. You may begin. Roger Pondel Thank you, operator. Good morning, everyone, and welcome to Jerash Holdings fiscal 2026 fourth quarter and full year conference call. I'm Roger Pondel with PondelWilkinson, Jerash Holdings Investor Relations firm. On the call today from the company, our chairman and Chief Executive Officer Sam Choi, Chief Financial Officer Gilbert Lee, and Eric Tang, who leads the company's operations in Jordan. Before I turn the call over to Sam, I want to remind our listeners that today's call may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to numerous conditions, many of which are beyond the company's control, including those set forth in the risk factor section of the company's most recent Form 10-K as filed with the Securities and Exchange Commission and copies of which are available on the SEC's website at www.sec.gov along with other company filings made with the SEC from time to time. Actual results could differ materially from these forward-looking statements and Jerash Holdings undertakes no obligation to update any forward-looking statements except as required by law. And with that, it is my pleasure to turn the call over to Sam Choi. Sam. Sam Choi Thank you, Roger. I'm pleased to report that Jerash closed fiscal 2026 with outstanding fourth quarter performance and record revenue for the full year. This strong performance was driven by increasing demand from the company's long outstanding key customer, as well as growing contribution from newer customers, including Henshaw Group in South Korea and other customers that have been acquired in recent years. Building on this momentum, The results reflected robust top-line growth and a meaningful improvement in profitability. These gains were supported by enhanced production capabilities and operational efficiencies. With increased automation and economies of scale, enabling a more balanced sales profile and improved margins throughout the year. We are confident in our ability to sustain this progress and continue delivering solid performance. I am pleased to report that the last shipments under Hensel's initial large order for 3 million pairs of gel shots were completed early in the fiscal fourth quarter. The products, and in turn, were well-received by Hensel's largest customer, a U.S.-based multinational omnichannel retailer, with 13 direct strong production quality and online delivery performance. We have since received two additional orders from Hensel for the same end customer. We continue to cultivate relationship with additional global brands and strategic partners as part of our broader strategy to diversify both our customer base and product mix, as well as to support more stable year-round production and reduce impact of technology on our business. Together with our blended capacity expansion, This initiative positioned us to deliver a steady pipeline of profitable growth. At Jerash, our team remains focused on further improving gross margins while maintaining precipitate operational execution and cost control. To support growing demand through a phased and capital division expansion strategy, we have begun renovating and expanding several manufacturing facilities and optimizing warehouse capacity, including in newly acquired buildings, rather than concentrating our investment in a single-threshold production complex. The first phase of renovation is expected to increase production capacity by approximately 15% and add 700 workers by the end of calendar year 2026. The remaining expansion is scheduled for completion by end 2027 and is expected to contribute an additional 20 to 25% in production capacity. With that, I will now turn the call over to Eric Tang, who is in charge of our operation in Jordan. Eric Tang Thank you, Sam. Jordan continues to be recognized as one of the world's preferred manufacturing hubs, supported by its extensive network of free trade agreements. a highly skilled and cost-competitive workforce, and a strategic geographic location that provides stable access to major markets, despite broader regional uncertainty. With both the Aqaba and Haifa Port fully open and operating normally, along with cooperation from customs and logistic partners, we were able to complete additional export shipments during the past quarter, despite the seasonal impact typically associated with the month-long Ramadan and Eid holiday period. As just now Sam mentioned, we are encouraged by the positive feedback from handshows and customers regarding Jerash’s production quality and delivery timeline, and have since received additional orders from Hensel for different styles. In addition, buyers from our key customer have placed large orders for our fiscal 2027 year. As a result, I'm happy to report that our facilities are now fully booked through December of 2026. Turning to our expansion plans, we are increasing capacity in a controlled manner. in phases while maintaining high production output. And we have begun adding production lines at two of our existing manufacturing facility. At the same time, we are converting our newest acquired facility into a centralized warehouse to further optimize operational efficiency. By the end of calendar year 2026, we expect to have increased capacity by approximately 15%, supported as Sam mentioned, by the addition of 700 new workers. The second phase of our expansion will provide converting to one facility that is currently functioning as a centralized cutting department to a production factory by adding 500 new state-of-the-art sewing machines and automation, supported by approximately 1,100 additional workers. We expect the second phase of expansion to contribute an additional 20 to 25% increase in capacity with completion planned by mid-calendar year 2027. As we mentioned during the last conference call, our collaboration with the Jordan Ministry of Labor to develop additional facilities in rural towns is proceeding well. Our first satellite factory, established in partnership with the Ministry of Labor, was in 2019. A second satellite factory just became operational in March 2026 and currently employs 130 local workers. We are planning to expand this site by additional floors, which will increase our production capacity by approximately 5% and employ up to 250 local employees. This project is positive for completion by the end of fiscal year 2027. In addition, we continue to work closely with the Ministry of Labor on plans for 1st Satellite Factory, which is expected to create approximately 500 additional jobs in the surrounding community outside of Asheri, which is about one hour away from Jordan's first satellite factory in Ahasa. Together, these initiatives support Jerash Holdings' objectives, while also contributing to local employment and economic development. Our long-term strategy is focused on sustaining growth momentum, with an objective of doubling our production capacity over the next few new year. As we broaden our customer base and enhance our product mix, by strategically optimizing capacity, we aim to deliver stronger, more predictable top-line growth alongside improved margin performance and enhanced operating leverage throughout the year. With that, I will turn the call over to Gilbert to discuss our financial results. Gilbert Lee Thank you, Eric. Revenue for the fiscal 2026 fourth quarter grew 46.6% to $42.9 million from 29.3 million in the same quarter last year. The increase was primarily driven by increased export shipments to the company's long-standing key customers, as well as orders from newer customers, including Hansel Group in South Korea and others that we developed in recent years. Gross profit increased 40.4% to $7.4 million for the fiscal 2026 fourth quarter from 5.2 million in the same quarter last year. Gross margin for the quarter was 17.1%, compared with 17.9% in the same period last year. Operating expenses were $5 million in the fiscal 2026 fourth quarter compared with 4.8 million in the same quarter last year. As a percentage of revenue, operating expenses fell by nearly five percentage points to 11.7% from 16.4% in the fourth quarter. fourth quarter of fiscal 2025. This reduction reflects improved control over export logistics costs and lower stock-based compensation. Operating income rose more than five times to $2.3 million in the fiscal 2026 fourth quarter from 434,000 in the same quarter last year. Total audit expenses in the fourth quarter were $399,000, including $383,000 in interest expenses, compared with $254,000 in the same quarter a year earlier, which included $371,000 of interest expenses. Income tax expenses were $270,000 in the fiscal 2026 fourth quarter, compared with $324,000 in the prior year quarter. Net income increased to $1.7 million or 12 cents per diluted share for the fiscal 2026 fourth quarter from a net loss of $144,000 or one cent per share for the same quarter last year. Comprehensive income attributable to the company's common stockholders advanced to $1.6 million in the fiscal 2026 fourth quarter from a comprehensive loss of 49,000 in the same quarter last year. While there were numerous changes to tariffs during fiscal 2026, and additional changes are anticipated in future years, but since tariffs are mostly paid by the company's customers, the overall impact on Jerash's bottom line has not been material. As of March 31st, 2026, cash and restricted cash total $12.5 million, and net working capital was $36.7 million. Inventory was $30 million, and accounts receivable amounted to $5.7 million. Net cash provided by operating activities was approximately $2.5 million for the fiscal end of March 31st, 2026, compared with $1.4 million in fiscal 2025 year. The increase was primarily attributable to net income of $33.6 million during fiscal 2026, with a net loss of $0.8 million during fiscal 2025, partially offset by higher accounts receivable, inventory, and accrued expenses. On May 4th, 2026, Jerash's Board of Directors approved a regular quarterly dividend of five cents per share on its common stock paid on May 21st, 2026 to stockholders of record as of May 14th, 2026. As both Sam and Eric said earlier, we are optimistic about the future of Jerash and remain committed to disciplined cost management and operating efficiency as we continue to execute our expansion plans and growth strategy. Looking ahead for the near term, we expect revenue for the fiscal 27 first quarter to increase by 20 to 22% over the same quarter of last year with a gross margin target for the fiscal 27 first quarter of 15 to 17%. We will now open the call for questions and I will turn the call back to the operator. Operator Certainly, at this time, we will be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. moment, please, while we poll for questions. Your first question for today is from Ryan Meyers with Lake Street Capital Markets. Ryan Meyers Hey, guys. Thanks for taking my questions. You know, congrats on the solid progress in the strong quarter. The first question for me, if we think about what you guys gave for the first quarter guidance and, you know, all the order flow that you're seeing through the rest of the year, you know, how should we think about the potential growth rate on a full-year basis and then as we proceed into the previous three quarters, just, you know, do you think that 20 to 22% growth is sustainable? I know you'll say some tougher comps in the second-half of the year. Just, you know, how we should think about things directionally for the full year. Gilbert Lee Well, actually, we haven't really projected that far out because, as you know, we are pretty much limited, the growth of our production and sales are pretty much limited by our capacity. As Eric mentioned, we are fully booked through December of 2026. And we could make some changes or there's still room for changes in our customer mix and product mix. So the overall number for fiscal 27, it is still uncertain. But there will definitely be growth and we will continue to do everything we could to maximize our capacity utilization and provide as much top-line growth as possible and also at an optimized margin and profitability. as we are expanding our capacity, we want to do it in a way that doesn't, that doesn't interrupt our normal operation. And so first quarter, we're pretty solid. We know what orders we have and what we're going to produce, but even second quarter, there's still some rooms for changes. So we really cannot project what the growth percentage for the full year is. But for the first quarter, we know we're going to be able to grow from 20 to 22% over the first quarter of fiscal 26. Ryan Meyers Okay, got it. And then just thinking about the facilities that you guys have booked through December of 2026. How much of that is firm purchase orders from your customers or just customers forecasting or expecting production? How much of that is like 100% purchase order? Gilbert Lee No, it's not 100% purchase order. Usually our customers will project six months to nine months worth of what they need from our production facilities. And then we will do our pricing, we will do our sample development, and I think it will be probably 30 to 60 days out, then we will receive the purchase order. Ryan Meyers Okay, got it, appreciate it, thanks for the lesson. Eric Tang Sorry Gilbert, allow me to say a few words. Okay, the reason why we say we are booked through the end of December production means we are planned according to what the customer's requirements because we receive projection. And 80% already confirmed order and the balance is the customer will confirm in the coming one or two months. According to our experience, okay, So for so many years running the production, 99%, okay, the customer will confirm the exact order. Okay, 99%. Ryan Meyers Okay, got it. Now that's helpful to understand. Thanks, guys. Operator Your next question is from Mike Baker with D.A. Davidson. Mike Baker Oh, hey, thanks. So hand-sell, first order went well. I think you said three million units, and now there's been two follow-up orders. Can you just order magnitude size, those follow-up orders? Was the three million, it wasn't a test per se, but as you prove your ability to deliver high quality on time, does the size of the additional orders increase? Eric, what are the two follow-up orders from Hensel? What is the quantity? Eric Tang two confirmed orders from Hansel. Firstly, one of the orders is more or less the same as the girl shot we did last year. So this is more or less like a repeat order, but our quantity is around three million pieces, but it is only for season one. Hansel told me that we will have season two, season three and season four. Season one means starting the production from end of August until next January. And then Season 2, we are receiving production also for Season 2, but it will start in February. And then Season 3 and Season 4 will continue. The second order, which is another style, which is the last quantity, is around 1.3 million pieces. Apart from these two orders, we are still waiting for confirmation from the buyer. I am sure that the Empire may need more consideration because previously the situation in the Middle East was not very comfortable for them, but they told us that if the ceasefire or any peace agreement, initial or temporary or long-lasting one, will be signed, they will immediately pay more order to Jordan, as they consider Jordan is still the most competitive manufacturing in country-based. Mike Baker And so, just one additional follow-up, this is more, are these more fashion sort of higher margin goods or are they more basic goods, which I know come in at a lower margin? Actually, okay, for the pencil order, maybe Gilbert, you can answer. Eric Tang No, you can answer, but basically the Hansel orders, they are more basic, simple styles. However, we were able to produce them at a much more efficient way as well as reaping the benefit of economies of scale. So the margin of these Hansel orders are actually very good. Mike Baker So then can you, one last one to remind us, you know, gross margins, the quarter you just recorded were certainly higher than consensus, but we're down, I think about 90 basic points year over year. What was the drag? You mean comparing to the fourth quarter of 2025, right? Gilbert Lee Correct, exactly. I remember the sales for fiscal, for fourth quarter 2025 was kind of low. There were some delays in shipping out in the fourth quarter for 2025. There were some conjectures at the ports. So we weren't able to ship out everything we produced. Now, I think there was some mixed issues. We basically ship out most of the orders that were with customers such as VF with higher margin. And we weren't able to produce a lot of the DM, what we call cut and make orders with lower margin. So we pretty much concentrate on producing higher margin and to produce and ship out higher margin products in Q4 of 2025 and the impact from the Ramadan holiday and also the Eid holiday in Q4 of 2025 was more significant. But this year, 2026, Q4, we were able to continue to produce and because I think we pretty much learned from our past experience, how to handle the disruption of the Ramadan. So this year, I mean, we projected a lower sales for Q4 this year, just to anticipate that there will be disruptions or there will be a lower output because of Ramadan. And also, if you remember, when we did the projection for Q4 of 26, the war just started between Iran and the US. So we were kind of concerned and were rather conservative in our ability to ship out because there could be port closing and all kinds of uncertainties. So, yeah, fortunately we were able to have a very high, well, actually this is a record high fourth quarter for us in Q4, and we were able to have a rather normal gross margin. Operator We have reached the end of the question-and-answer session, and I will now turn the call over to Sam Choi for closing remarks. Sam Choi Thank you, Operator, and thanks to all of you for joining us today. We appreciate your ongoing support and interest in Jerash, and we look forward to updating you on the progress in the near future. Thank you very much. Operator Thank you. This concludes today's conference and you may disconnect your lines at this time. Thank you for your participation. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Jerash (JRSH) Q4 2026 Earnings Transcript was originally published by The Motley Fool

-- Robust Fourth-Quarter Growth Caps Record Revenue Year as Profitability Accelerates -- FAIRFIELD, NJ / ACCESS Newswire / June 15, 2026 / Jerash Holdings (US), Inc. (NASDAQ:JRSH) (the "Company" or "Jerash"), which manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands, today announced financial results for its fiscal 2026 fourth quarter and full year ended March 31, 2026. Fiscal 2026 Fourth Quarter Highlights Revenue increased by 46.6 percent to $42.9 million, from $29.3 million in the prior year quarter. Gross margin was 17.1 percent, compared with 17.9 percent a year ago. Operating income advanced more than fivefold to $2.3 million, from $434,000 in the prior year quarter. Net income improved significantly to $1.7 million, compared with a net loss of $144,000 last year. Fiscal 2026 Full Year Highlights Revenue increased by 14.0 percent to a record $166.3 million, from $145.8 million in fiscal 2025. Gross margin improved to 16.1 percent, from 15.3 percent in fiscal 2025. Operating income more than quadrupled to $6.3 million, from $1.4 million in fiscal 2025. Net income improved to $3.6 million, or $0.27 per diluted share, from a net loss of $840,000, or $0.07 per share, in fiscal 2025. Outlook Revenue for the fiscal 2027 first quarter is expected to increase by 20 to 22 percent over $39.6 million in the prior fiscal year's first quarter. Gross margin for the fiscal 2027 first quarter is anticipated to be approximately 15 to 17 percent, with increased emphasis on customer diversification and reduced seasonality. "Jerash closed fiscal 2026 achieving strong fourth quarter performance and record revenue for the full year, driven by rising demand from both our long-standing global brand customers and orders from newer customers over the past few years," said Sam Choi, Jerash's chairman and chief executive officer. "We have made progress toward reducing customer concentration, and along with improved production efficiencies, we managed to smooth out seasonality in the second half of fiscal 2026 to achieve higher sales and better margins. With both the Aqaba and Haifa ports fully open and operating normally during the quarter, we were also pleased to complete additional export shipments despite the seasonal impact typically associated with the month-long Ramadan and Eid al-Fitr holiday period, which began on February 19 this year. "Operationally, we are expanding production and reorganizing warehouse capacity in phases at several manufacturing facilities, including our newly acquired building, to better accommodate growing customer demand. The first phase of renovation is expected to add approximately 15 percent to our capacity and accommodate 700 additional workers by the end of calendar year 2026. The remaining expansion is planned for completion by mid-calendar year 2027, which should contribute an additional 20 to 25 percent in production capacity. "Our production facilities are fully booked through December 2026, ensuring a steady flow of profitable growth. Management remains focused on further improving gross margin through increased automation and enhanced production efficiencies driven by economies of scale," Choi added. Fiscal 2026 Fourth Quarter Results Fiscal 2026 fourth quarter revenue rose by 46.6 percent to $42.9 million, from $29.3 million in the same quarter last year, primarily reflecting increased export shipments to the Company's long-standing key customers, as well as orders from newer customers, including Hansoll Group in South Korea, and others developed in recent years. Gross profit increased 40.4 percent to $7.4 million for the fiscal 2026 fourth quarter, from $5.2 million in the same quarter last year. Gross profit margin for the quarter was 17.1 percent, compared with 17.9 percent in the same period last year. Operating expenses totaled $5.0 million in the fiscal 2026 fourth quarter, compared with $4.8 million in the same quarter last year. As a percentage of revenue, total operating expenses decreased by almost 5 percentage points to 11.7 percent, from 16.4 percent in the fiscal 2025 fourth quarter. The lower expenses principally reflected improved control over export logistics costs and lower stock-based compensation. Operating income rose more than fivefold to $2.3 million in the fiscal 2026 fourth quarter, up from $434,000 in the same quarter last year. Total other expenses in the fiscal 2026 fourth quarter were $399,000, including $383,000 in interest expenses, compared with $254,000, including $371,000 in interest expenses partially offset by other income, in the prior year quarter. Income tax expenses were $270,000 in the fiscal 2026 fourth quarter, compared with $324,000 in the prior year quarter. The effective income tax rate for the fiscal 2026 fourth quarter declined to 13.9 percent, mainly due to improvements in group profitability and lower Jordan income tax rate for companies in qualified development zones under a new investment law. Net income rose to $1.7 million, or $0.12 per diluted share, for the fiscal 2026 fourth quarter, from a net loss of $144,000, or $0.01 per share, for the same quarter last year. Comprehensive income attributable to the Company's common stockholders advanced to $1.6 million in the fiscal 2026 fourth quarter, from a comprehensive loss of $49,000 in the same quarter last year. Fiscal 2026 Full Year Results Revenue for the full 2026 fiscal year increased by 14.0 percent to a record high $166.3 million, from $145.8 million in fiscal 2025. Gross profit for fiscal 2026 rose 20.0 percent to $26.8 million, from $22.3 million in the prior fiscal year. Gross margin for fiscal 2026 improved to 16.1 percent from 15.3 percent in fiscal 2025. Total operating expenses for fiscal 2026 were $20.5 million, compared with $20.9 million in fiscal 2025. Operating income more than quadrupled to $6.3 million for the full 2026 fiscal year, from $1.4 million in the last fiscal year. Total other expenses in fiscal 2026 were $1.6 million, compared with $1.3 million in fiscal 2025. Income tax expenses were $1.1 million for fiscal 2026, compared with $991,000 for fiscal 2025. Net income for fiscal 2026 improved by $4.5 million to $3.6 million, or $0.27 per diluted share, from a net loss of approximately $840,000, or $0.07 per share, in fiscal 2025. Comprehensive income attributable to Jerash's common stockholders improved to $3.6 million in fiscal 2026, from a comprehensive loss of $869,000 in fiscal 2025. Balance Sheet, Cash Flow and Dividends Cash and restricted cash totaled $12.5 million, and net working capital was $36.7 million as of March 31, 2026. During fiscal 2026, the Company purchased a manufacturing building and associated land in Al Tajamouat Industrial City for approximately $3.4 million, financed in part with a long-term bank loan of approximately $2.8 million. The Company also obtained two new revolving credit facilities totaling up to $20.0 million, both of which were undrawn as of March 31, 2026. On May 4, 2026, the board of directors of Jerash approved a regular quarterly dividend of $0.05 per share on the Company's common stock. The dividend was paid on May 21, 2026, to stockholders of record as of May 14, 2026. Conference Call Jerash Holdings will host an investor conference call to discuss its fiscal 2026 fourth quarter and full year results today, June 15, 2026, at 9:00 a.m. Eastern Time. Phone: 888-506-0062 (domestic); 973-528-0011 (international) Conference ID: 899698 A live and archived webcast will be available online in the investor relations section of Jerash's website at www.jerashholdings.com. For those who are not able to listen to the live broadcast, the call will be archived for approximately one year on the website. About Jerash Holdings (US), Inc. Jerash Holdings (US), Inc. manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands and retailers, including VF Corporation (which owns brands such as The North Face, Timberland, and Vans), New Balance, G-III (which licenses brands such as Calvin Klein, Tommy Hilfiger, and Nautica), Hugo Boss, American Eagle, and Acushnet (which owns brands such as Footjoy and Titleist). Jerash's existing production facilities comprise eight factory units and six warehouses, and Jerash currently employs approximately 6,300 people. Additional information is available at www.jerashholdings.com. Forward-Looking Statements This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", "seek", "potential," "outlook" and similar expressions are intended to identify forward-looking statements. Such statements, including, but not limited to, Jerash's current views with respect to future events and its financial forecasts, and expansion of the customer base among high-profile global brands, are subject to such risks and uncertainties. Many factors could cause actual results to differ materially from the statements made, including those risks described from time to time in filings made by Jerash with the U.S. Securities and Exchange Commission. These and other risks and uncertainties are detailed in the Company's filings with the U.S. Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated or expected. Statements contained in this news release regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Jerash does not intend and does not assume any obligation to update these forward-looking statements, other than as required by law. Contact:PondelWilkinson Inc.Judy Lin or Roger Pondel310-279-5980; [email protected] # # # (tables below)   JERASH HOLDINGS (US), INC., AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)   JERASH HOLDINGS (US), INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS   JERASH HOLDINGS (US), INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS SOURCE: Jerash Holdings (US), Inc. View the original press release on ACCESS Newswire

This article first appeared on GuruFocus. Revenue: $42.9 million for Q4 fiscal 2026, up 46.6% from $29.3 million in the same quarter last year. Gross Profit: $7.4 million for Q4 fiscal 2026, up 40.4% from $5.2 million in the same quarter last year. Gross Margin: 17.1% for Q4 fiscal 2026, compared to 17.9% in the same period last year. Operating Expenses: $5 million for Q4 fiscal 2026, compared to $4.8 million in the same quarter last year. Operating Income: $2.3 million for Q4 fiscal 2026, up from $434,000 in the same quarter last year. Net Income: $1.7 million or $0.12 per diluted share for Q4 fiscal 2026, compared to a net loss of $144,000 or $0.01 per share in the same quarter last year. Comprehensive Income: $1.6 million for Q4 fiscal 2026, compared to a comprehensive loss of $49,000 in the same quarter last year. Cash and Restricted Cash: $12.5 million as of March 31, 2026. Net Working Capital: $36.7 million as of March 31, 2026. Inventory: $30 million as of March 31, 2026. Accounts Receivable: $5.7 million as of March 31, 2026. Net Cash from Operating Activities: $2.5 million for fiscal year ended March 31, 2026. Dividend: $0.05 per share, paid on May 21, 2026. Warning! GuruFocus has detected 11 Warning Signs with JRSH. Is JRSH fairly valued? Test your thesis with our free DCF calculator. Release Date: June 15, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Jerash Holdings (US) Inc (NASDAQ:JRSH) reported record revenue for fiscal 2026, driven by strong demand from key and new customers. The company achieved a 46.6% increase in revenue for the fiscal 2026 fourth quarter compared to the same period last year. Jerash Holdings (US) Inc (NASDAQ:JRSH) has successfully completed large orders for Hansoll Group, leading to additional orders and strong customer satisfaction. The company is expanding its production capacity by 15% by the end of 2026 and an additional 20% to 25% by the end of 2027. Jerash Holdings (US) Inc (NASDAQ:JRSH) is strategically optimizing its operations with new facilities and increased workforce, aiming to double production capacity in the coming years. Gross margin for the fiscal 2026 fourth quarter decreased to 17.1% from 17.9% in the same period last year. Operating expenses increased slightly to $5 million in the fiscal 2026 fourth quarter compared to $4.8 million in the same quarter last year. The company faces uncertainties in projecting full-year growth due to capacity limitations and potential changes in customer and product mix. Interest expenses increased to $383,000 in the fiscal 2026 fourth quarter from $371,000 in the same quarter a year earlier. The company is exposed to geopolitical risks in the Middle East, which could impact future order confirmations and operations. Q: Congrats on the solid progress in the strong quarter. How should we think about the potential growth rate on a full-year basis, considering the order flow and the guidance for the first quarter? Is the 20% to 22% growth sustainable? A: Gilbert Lee, Chief Financial Officer: We haven't projected that far out as our growth is limited by capacity. We are fully booked through December 2026, and while there is room for changes in customer and product mix, the overall number for fiscal '27 is still uncertain. However, we expect growth and will maximize capacity utilization for top-line growth and optimized margins. For the first quarter, we anticipate a 20% to 22% growth over fiscal '26. Q: Regarding the facilities booked through December 2026, how much of that is firm purchase orders versus customer forecasts? A: Gilbert Lee, Chief Financial Officer: It's not 100% purchase orders. Customers project 6 to 9 months ahead, and we finalize orders 30 to 60 days out. Eric Tang, Head of Operations, Jordan: 80% are confirmed orders, and the rest will be confirmed in the coming months. Historically, 99% of projected orders are confirmed. Q: Can you size the follow-up orders from Hansoll after the initial 3 million units? Are these orders increasing in size as you prove your delivery capabilities? A: Eric Tang, Head of Operations, Jordan: The first follow-up order is similar to the initial 3 million pieces, covering season 1. We have projections for seasons 2, 3, and 4. The second order is for 1.3 million pieces. We are discussing additional styles and expect more orders if regional stability improves. Q: Are the Hansoll orders more fashion-oriented with higher margins, or are they basic goods with lower margins? A: Eric Tang, Head of Operations, Jordan: The Hansoll orders are basic styles, but we produce them efficiently, benefiting from economies of scale, resulting in very good margins. Q: Gross margins in the reported quarter were higher than consensus but down year-over-year. What caused the drag? A: Gilbert Lee, Chief Financial Officer: In Q4 2025, sales were low due to shipping delays and port congestion. We focused on higher-margin products, impacting the mix. In Q4 2026, we managed disruptions better, leading to a record high quarter with normal gross margins despite initial conservative projections due to regional uncertainties. For the complete transcript of the earnings call, please refer to the full earnings call transcript.