Jerash Holdings (US), Inc. (NASDAQ:JRSH) Q4 2022 Earnings Conference Call June 23, 2022 9:00 AM ET

Company Participants

Roger Pondel - PondelWilkinson, IR

Sam Choi - Chairman and CEO

Gilbert Lee - Chief Financial Officer

Eric Tang - Head, Operations, Jordan

Conference Call Participants

Mike Baker - D.A. Davidson

Mark Argento - Lake Street

Rommel Dionisio - Aegis Capital

Operator

Good morning. And welcome to Jerash Holdings Fiscal 2022 Fourth Quarter and Full Year Conference Call. All participants will be in listen-only mode. After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions]

I would now like to turn the conference over to Roger Pondel. Please go ahead.

Roger Pondel

Thank you, Operator. Good morning, everyone. And welcome to Jerash Holdings fiscal 2022 fourth quarter and full year conference call. I’m Roger Pondel with PondelWilkinson, Jerash Holdings’ Investor Relations Firm. It will be my pleasure momentarily to introduce the company’s Chairman and Chief Executive Officer, Sam Choi; its 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 and Form 10-Q 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. 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, and hello, everyone. Our fiscal 2022 fourth quarter and full year sales demonstrated, Jerash underlying foundational strength and attractiveness of its manufacturing capabilities to quibble bend.

While our topline was up sharply, gross profit for the fourth quarter was impacted by product mix that includes fewer than expected jacket orders, as U.S. retailers faced the strains of a weaker economic environment due to inflation.

On the positive side, we were able to quickly shift manufacturing to produce other premium brand sportswear items such as pants and polos, although these items carry lower margins. Jerash is in the fortunate position of having strong customer relationships, along with the ability to attract new customers even during the current macroeconomic environment.