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Jerash Holdings (US) (NASDAQ:JRSH) reported a sharply improved fiscal fourth quarter, with executives pointing to stronger demand from its longstanding key customer, new business from South Korea’s Hansol Group and better operating efficiency as drivers of the apparel manufacturer’s performance.
Chairman and Chief Executive Officer Sam Choi said the company ended fiscal 2026 with “outstanding fourth-quarter performance and record revenue for the full year.” He said growth was supported by increased orders from Jerash’s key customer and a growing contribution from newer customers, including Hansol and others added in recent years.
Operating expenses were $5 million, compared with $4.8 million a year earlier. As a percentage of revenue, Lee said operating expenses declined to 11.7% from 16.4%, reflecting better control of export logistics costs and lower stock-based compensation.
Operating income rose to $2.3 million from $434,000 in the same quarter last year. Net income was $1.7 million, or $0.12 per diluted share, compared with a net loss of $144,000, or $0.01 per share, in the prior-year quarter.
Hansol Orders Add to Customer Diversification Effort
Choi said Jerash completed the final shipments under Hansol’s initial large order for 3 million pairs of girls’ socks early in the fiscal fourth quarter. He said the products were well received by Hansol’s largest customer, described as a U.S.-based multinational omni-channel retailer, and cited Jerash’s production quality and on-time delivery performance.
Executives said Jerash has received two additional orders from Hansol for the same end customer. During the question-and-answer session, management said one follow-up order is around 3 million pieces for “season one,” with additional seasonal projections expected, while a second order for another style is around 1.3 million pieces. The company also said it is discussing several more styles with Hansol, though those orders had not yet been confirmed.
Lee said Hansol’s orders are more basic styles, but that Jerash can produce them efficiently and benefit from economies of scale. He said the margins on the Hansol orders are “very, very good.”
Facilities Booked Through December 2026
Eric Tang, who leads Jerash’s operations in Jordan, said the company’s facilities are fully booked through December 2026. In the Q&A session, management clarified that the production schedule includes customer projections, with about 80% already confirmed and the balance expected to be confirmed in the coming months. Lee said customers typically provide six- to nine-month projections, while purchase orders may arrive 30 to 60 days before production.
Tang also said Jordan remains a preferred manufacturing hub because of its free trade agreements, skilled and cost-competitive workforce and strategic location. He said the Aqaba and Haifa ports were open and operating normally, allowing Jerash to complete additional export shipments during the quarter despite the seasonal impact of Ramadan and Eid.
Capacity Expansion Planned in Phases
Jerash is expanding capacity through renovations and facility optimization rather than concentrating investment in a single new production complex. Choi said the first phase is expected to increase production capacity by about 15% and add 700 workers by the end of calendar 2026.
Tang said Jerash has begun adding production lines at two existing manufacturing facilities and is converting a newly acquired facility into a centralized warehouse. A second phase is expected to convert an existing centralized cutting department into a production factory by adding 500 new sewing machines and automation, supported by about 1,100 additional workers. Management said that phase is expected to add another 20% to 25% in capacity during 2027.
The company is also working with Jordan’s Ministry of Labour on satellite factories in rural communities. Tang said a second satellite factory became operational in March 2026 and employs 130 local workers. Jerash plans to expand that site to increase production capacity by about 5% and employ up to 250 workers. The company is also discussing a third satellite factory expected to create about 500 jobs.
Outlook Calls for First-Quarter Growth
Lee said tariffs are mostly paid by Jerash’s customers and have not had a material impact on the company’s bottom line. As of March 31, 2026, Jerash had $12.5 million in cash and restricted cash and $36.7 million in net working capital. Inventory totaled $30 million, and accounts receivable were $5.7 million.
Net cash provided by operating activities was about $2.5 million for fiscal 2026, compared with $1.4 million in fiscal 2025. Jerash’s board also approved a regular quarterly dividend of $0.05 per share, paid May 21 to shareholders of record as of May 14.
For the fiscal 2027 first quarter, Lee said Jerash expects revenue to increase 20% to 22% from the year-earlier quarter, with a gross margin target of 15% to 17%. Asked about full-year growth, Lee said management had not projected that far out because sales remain constrained by production capacity and customer mix, though he said the company expects growth and is working to maximize utilization and profitability.
About Jerash Holdings (US) (NASDAQ:JRSH)
Jerash Holdings (NASDAQ:JRSH) is a global designer, manufacturer and marketer of intimate apparel, sportswear and swimwear. Founded in 1994 in the Jerash special economic zone of Jordan, the company has built a vertically integrated production model that spans product design, raw material sourcing, fabric printing, sewing and finishing. By controlling each stage of the manufacturing process, Jerash maintains strict quality standards and achieves competitive lead times for its apparel collections.
Operating state-of-the-art facilities in Jordan with a workforce of more than 10,000 employees, Jerash produces both proprietary brands and private-label merchandise for major retailers.
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