Business
Jerash Holdings Reports Fiscal 2023 Second Quarter Financial Results
Performance Impacted by Slowing Economy and Postponement of Shipments Requested by CustomersCompany Announces New Joint Venture and Makes Progress with
About this update from Jerash Holdings (us), Inc.
[{"type":"text","content":"Performance Impacted by Slowing Economy and Postponement of Shipments Requested by CustomersCompany Announces New Joint Venture and Makes Progress with Initiative to Expand Base of Global CustomersFAIRFIELD, NJ / ACCESSWIRE / November 10, 2022 / Jerash Holdings (US), Inc. (\"Jerash\" or the \"Company\") (NASDAQ:JRSH), which manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands, today announced financial results for its fiscal 2023 second quarter, ended September 30, 2022.Jerash also announced that on November 9, 2022, it signed a memorandum of understanding to establish a joint venture company with Busana Apparel Group (\"Busana\") to produce garments for Busana's retail customers that are expressing interest to geographically diversify and add production in Jordan, which has long-standing duty-free export agreements with the U.S., the EU and other countries.\"General market conditions throughout the global retail sector continued to be impacted by inflationary pressures and higher interest rates, which have weakened consumer demand,\" said Sam Choi, Jerash's chairman and chief executive officer. \"Combined with higher inventory levels, this has restrained orders from our major customers. As a result, our revenue was lower than originally expected by approximately $4 million due to shipment postponements, as retailers work down their inventories.\"Despite the current business environment, we are making excellent progress with our initiative to expand and diversify our global branded customer base and pursue other opportunities. We recently added Timberland and Skechers as new customers, and initial shipments to both are beginning in the current fiscal third quarter. These and additional new customers are expected to play an important role for Jerash next year and beyond, providing additional growth opportunities and diversification.\"\"In addition, we believe our planned joint venture with Busana, which is expected to be completed in the first half of calendar year 2023, to be an outstanding growth opportunity for Jerash, giving us visibility in the athleisure wear and technical clothing segment. Busana is one of the world's largest manufacturers and exporters of high-quality woven garments.\" Choi said.\"We also are continuing to add new sourcing partners in the Middle East and North Af...