Jerash Holdings (US), Inc. (NASDAQ:JRSH) Q2 2024 Earnings Call Transcript November 13, 2023 9:00 AM ET
Company Participants
Roger Pondel - IR
Sam Choi - Chairman and CEO
Eric Tang - Executive Director
Gilbert Lee - CFO
Conference Call Participants
Mike Baker - D.A. Davidson
Mark Argento - Lake Street Capital
Operator
Greetings, and welcome to the Jerash Holdings Fiscal 2024 Second Quarter Financial Results. At this time, all participants are in a listen-only mode and the floor will be open for questions after the presentation. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Mr. Roger Pondel, Investor Relations. You may begin.
Roger Pondel
Thanks so much, operator, and good morning again, everyone. Welcome to Jerash Holdings Fiscal '24 Second Quarter 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 Factors section of the company's most recent Form 10-K as filed with the Securities and Exchange Commission, 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's my pleasure to turn this call over to Sam Choi. Sam?
Sam Choi
Thank you, Roger, and hello, everyone. Our second quarter performance again demonstrated Jerash's ability to attract new customers and our resiliency in the challenging apparel environment. Retail market condition for global brands in the US and Europe has been slow to recover, which in return is impacting our business compared with the prior year. Customers' orders have generally fit the lower priced items, which carry lower margins. Nevertheless, our revenue and gross margin remain essentially stable on a sequent basis.
During the quarter, good progress was made with our Busana joint venture partner. Thus far, five joint venture premium brand customers have committed to placing orders. Marketing to additional prospective customers is continuing and feedback is encouraging. Current projections from the joint venture for the next 12 months call for about $8 million to $9 million in new orders, starting in a meaningful way in our fiscal four quarters.