Jerash Holdings (US), Inc. (JRSH) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

As part of our ongoing strategy, we continue to successfully diversify both our customer base and product mix. This effort was aimed at enhancing year-round production stability and reducing the impact of seasonality on our business. While we anticipate these changes will strengthen our long-term growth we do expect a slightly lower average gross margin in the near term. As order volumes for our expanded product offerings continue to scale in the coming years, our goal is to gradually improve gross profit margins to approximately 20%. We expect to achieve this through increased production automation and the benefits of economies of scale. During this important period of progress for the company, we remain vigilant about the potential impact of regional geopolitical uncertainties and involving terrorist developments. These factors are being closely monitored as we advance our growth strategy to ensure resilience and long-term success. With that, I will now turn the call over to Eric, who is in charge of our operations in Jordan. Thank you, Sam. As we have noted previously, we believe the recent shift in US tariff policy has accelerated the urgency with which businesses are looking to diversify their manufacturing footprint. and we are seeking ways to accommodate growing capacity demands. We have successfully completed shipping the initial phase of the major collaboration order of more than 3 million pairs of girl shorts from our strategic partnership with Hanseo Textile, a leading South Korea-based global apparel group that supplies a wide range of garments to major international retail and fashion brands. Shipment of second phase is now scheduled to be completed by end of November. Production and shipments for the rest of the order are scheduled to continue through F...