Financial Data and Key Metrics Changes - Revenue for Q1 2025 increased by 17.8% to $40.9 million from $34.7 million in the same quarter last year, marking an all-time high [9][10] - Gross profit was $4.6 million, down from $5.6 million in the same quarter last year, with gross margin decreasing to 11.3% from 16.0% [10] - Net loss was $1.4 million, or $0.11 per share, compared to net income of $495,000, or $0.04 per share, in the same period last year [11] - Operating loss totaled $829,000 in Q1 2025, compared to operating income of $1.1 million in the same period last year [11] Business Line Data and Key Metrics Changes - The company experienced delays in approximately 16% to 18% of orders from the previous quarter, which were shipped in Q1 2025 [6] - The company is ramping up production to catch up on delivery schedules, with manufacturing facilities operating at full capacity [6][8] Market Data and Key Metrics Changes - Purchase orders from long-term global customers are increasing, with additional trial orders from major brands through the joint venture with Busana Apparel Group [5][8] - Orders from two European high-end apparel brands, including Armani, are steadily increasing [8] Company Strategy and Development Direction - The company is diversifying its customer base, which is expected to position it well for growth as the economic environment improves [5] - Contingency plans are in place to minimize disruptions due to geopolitical uncertainties in the region [5][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about positive momentum heading into fiscal 2025, with a record number of purchase orders [5] - The company anticipates revenue growth of 20% to 25% for the full year 2025, with gross margin expected to be approximately 12% to 14% [12] Other Important Information - Operating expenses for Q1 2025 were $5.5 million, up from $4.5 million in the same quarter last year, including additional air freight costs of approximately $300,000 [10] - The Board of Directors approved a regular quarterly dividend of $0.05 per share, payable on August 23, 2024 [12] Q&A Session Summary Question: Revenue guidance increase - The company raised its revenue guidance for the full year from 15%-18% to 20%-25%, attributing this to new customer orders and strong demand [14][15] Question: Gross margin expectations - Management acknowledged that gross margin was below expectations due to supply chain disruptions but anticipates stabilization in the second half of the year [18][19] Question: Customer compensation for additional costs - Customers generally do not directly compensate for additional costs incurred due to disruptions, but they may allow for a margin increase on future orders [19][20] Question: Supply chain financing usage - The company is cautious about using supply chain financing due to high interest rates but may tap into it as needed to maintain cash flow [21][22]
Jerash Holdings(JRSH) - 2025 Q1 - Earnings Call Transcript