JRSH News & Events

Reports Q3 revenue $41.8M vs. $35.4M last year. "Jerash's fiscal 2026 third quarter results reflect increasing demand from our long-standing core global brand customers, complemented by the initial contributions from our new strategic partner in Korea, which together drove meaningful improvements across both the top and bottom lines," said Sam Choi, Jerash's chairman and chief executive officer. "With our new customers, we expect strong revenue growth that exceeds our current manufacturing capacity, which reinforces our decision to expand operations to meet demand. We are thrilled with the recently announced acquisition of a bank-owned manufacturing building and associated land, which represents a significant milestone in advancing Jerash's business growth strategy for the next five years. Upon completion of renovations by the end of this calendar year, the new manufacturing building is expected to increase production capacity by at least 40 percent, substantially enhancing our ability to support increasing demand, as we continue to expand and diversify customer base and product mix. This expansion improves our operational flexibility and supports efficient scaling, while maintaining the quality and cost discipline our customers expect. As order volumes continue to grow for new and expanded product offerings, we remain focused on driving further gross margin improvement," Choi added.

Jerash Holdings received approval from the Housing Bank for Trade and Finance to acquire an approximate 184,000 square-foot, bank-owned manufacturing building and associated land adjacent to its existing facilities in Amman, Jordan, for around $3.4M The Company committed a $0.6M down payment, with the Housing Bank financing the remaining $2.8M of the acquisition over an eight-year period, with the first principal payment due from Jerash in February 2027. Jerash plans to invest an additional approximate $5M to renovate the property and for the purchase of advanced manufacturing equipment to establish its new flagship production complex. This strategic investment is expected to allow Jerash to increase its manufacturing capacity by at least 40 percent and support increasing demand from existing customers, while enabling the Company to pursue new business opportunities. Renovations are anticipated to be completed before the end of 2026. Once operational, the new facility is expected to gradually employ up to approximately 2,500 workers, as demand and order volumes increase. Recruiting efforts will begin before renovations are completed and prior to the installation of new equipment, ensuring the facility can ramp up operations quickly upon completion.

Revenue for the fiscal 2026 third quarter is expected to increase by 19 to 21 percent over the same quarter last year. Gross margin goal for the fiscal 2026 third quarter is approximately 13 to 15 percent.

Reports Q2 revenue $42M vs. $40.2M last year. "Amid ongoing trade uncertainties, we continue to experience growing demand from our customers, as Jordan is increasingly becoming a preferred destination for global brands seeking to diversify their manufacturing partnerships beyond Asia," said Sam Choi, CEO. "In late June, we completed an expansion of our existing manufacturing facilities, adding approximately 15 percent to our much-needed production capacity. With increasing capacity requests from our global customers and strategic partners, we have initiated a long-term expansion plan to support anticipated growth. This includes exploring potential acquisitions and facility development on our own land to ensure that Jerash remains well-positioned to sustain our competitive edge and meet evolving market demands. Gross margin for the quarter was lower than that for the same period last year, which benefited from catch-up production of higher-margin outerwear originally scheduled for the first quarter of fiscal 2025. Additionally, as we successfully continue to diversify our customer base and product mix, we expect a slightly lower average gross margin in the near term. As order volumes for our expanded product offerings continue to scale, our goal is to improve gross profit margins through increased production automation and the benefits of economies of scale. During this important period of progress for the Company, we remain attentive to potential impacts of geopolitical uncertainties in the region and evolving tariff developments as we continue advancing our growth strategy," Choi added.