Jerash Holdings (US), Inc.

What they do

Jerash Holdings manufactures and exports ready-made sportswear and outerwear from knitted fabric, using facilities in Jordan that include eight factories and six warehouses with roughly 6,300 employees. It produces items such as t-shirts, polo shirts, pants, shorts, and jackets, with an annual capacity of about 24 million pieces as of March 31, 2026. The company operates through multiple subsidiaries, with a holding company structure based in Delaware.

Revenue drivers

• VF Corporation — Largest customer; accounted for 57% of Q1 FY2027 revenue ($28.7 million) and about 52% of fiscal 2026 sales.
• New Balance — Second-largest customer; Q1 FY2027 sales of $7.8 million, 16% of revenue, up from $4.8 million in the prior-year quarter.
• Suzhou Unitex — Accounts for 15% of Q1 FY2027 revenue ($7.6 million), nearly double the prior-year quarter's $3.8 million.
• Korea strategic partner (Hansoll) — New customer contributing $2.2 million in Q1 FY2027 (4% of revenue); introduced as a major growth driver.

Recent performance

For the fiscal 2027 first quarter ended June 30, 2026, revenue rose 27% to a record $50.2 million, from $39.6 million a year earlier. Gross profit increased 36% to $8.3 million, with gross margin expanding 100 basis points to 16.4%. Net income advanced more than fivefold to $1.7 million, or $0.13 per diluted share, from $324,000, or $0.03 per diluted share. Operating income grew 174% to $2.6 million, supported by higher shipments to U.S. buyers and a new customer in Korea.

Strategy

Management emphasizes leveraging its Jordan-based manufacturing platform and newly announced duty-free access for Jordanian apparel exports to the U.S. to win new business and deepen relationships with existing brands. The company is expanding production capacity to meet customer demand and investing in automation for efficiency gains. It is also using supply chain financing programs and letter of credit financing to support raw material purchases and early payments, particularly for the Korean strategic partner.

Risks

• Customer concentration — VF Corporation accounted for 52% of FY2026 revenue and 57% of Q1 FY2027 revenue; no long-term contracts or minimum purchase commitments.
• Geopolitical logistics and costs — Middle East geopolitical developments could disrupt export logistics and raise transportation costs for raw materials imported from Asia.
• Raw material cost pressure — Increased transportation costs for raw material imports could compress gross margins in the fiscal 2027 second quarter.
• Purchase order volatility — Customer orders are placed on a purchase order basis, with order sizes varying widely (e.g., VF orders ranged from $5 to $296,000 in FY2026).

Outlook

For the fiscal 2027 second quarter, management expects revenue of approximately $49 million to $51 million, subject to logistics efficiency amid geopolitical uncertainties. Gross margin is expected to be around 14% to 15%, reflecting higher transportation costs for raw materials. Management remains optimistic about growth, citing favorable trade conditions and strong customer relationships.