Business Overview
Jerash Holdings is a manufacturer of customized sportswear and outerwear from knitted fabric, operating eight factories and six warehouses in Jordan with approximately 6,300 employees and annual capacity of approximately 24 million pieces. The company manufactures for well-known brands and retailers including VF Corporation, New Balance, G-III, Hugo Boss, American Eagle, and Acushnet. During fiscal 2026, the company experienced a shift in primary product offerings to vests, shorts and pants (35% of shipped pieces) from crew neck products, and is expanding capacity with new facility construction and new customer relationships such as Hansoll Group.
Segment Performance
No segment performance data is provided in the MD&A excerpt. The document presents consolidated financial information by customer rather than by business segment, showing total sales of $166,264 thousand in fiscal 2026 compared to $145,812 thousand in fiscal 2025, representing a 14% increase year-over-year.
Forward Guidance
The company states it is "working with engineering consultants on the architectural design of the building, taking into account the potential business growth brought about by the new business expansion with new customers such as Hansoll Group" and will "carefully plan the construction investment to meet the progress of business developments." The company also notes a sixth factory at Property No. 1326 "will be our sixth factory in Al Tajamouat Industrial City and production is scheduled to commence in fiscal 2027."
Key Risk Factors
The company relies heavily on VF Corporation for 52% of fiscal 2026 revenue with no long-term contracts or minimum purchase requirements, creating significant customer concentration risk. Operations are subject to political, security, and economic conditions in Jordan including exposure to terrorism, military activity, and geopolitical tensions (Israel-Hamas, Russia-Ukraine, Houthi attacks on Red Sea shipping). Recent U.S. tariff changes, including a baseline 10% tariff and Section 122 across-the-board 10% tariff through July 2026, may impact customer demand and competitiveness despite these being typically borne by importers. The company faces intense competition from manufacturers in Asia, Israel, Europe, and the Americas with potentially lower cost bases and larger customer networks. Labor costs, supply chain disruptions, and exchange rate volatility in Jordan present additional operational and financial risks.
