# Jerash Holdings (US), Inc.

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/fi/companies/Jerash Holdings (US), Inc.).

## Overview

Jerash Holdings (US), Inc. manufactures customized ready-made sportswear, outerwear, and related apparel for branded customers, with production centered in Jordan. The company operates as a contract garment manufacturer, supplying items such as jackets, polo shirts, t-shirts, pants, shorts, and PPE through its own factories and trading/sales subsidiaries.

## Products & services

• Customized sportswear and outerwear manufacturing
• Jackets, polo shirts, t-shirts, pants, and shorts
• Contract manufacturing for branded apparel customers
• PPE manufacturing and trading
• Fabric/fiber supply via Jerash Newtech JV

- **Sportswear and outerwear** (85%) — Custom-made knit apparel including jackets, polo shirts, t-shirts, pants, and shorts.
- **Brand-specific contract manufacturing** (10%) — Made-to-order production for global apparel brands and retailers under customer specifications.
- **PPE products** (3%) — Personal protective equipment manufactured and traded through Jerash The First and Jerash Supplies.
- **Fabric and fiber supply** (2%) — Cooltrans-printed fiber and fabric supply through the Hong Kong joint venture.

- Customized sportswear and outerwear manufacturing
- Jackets, polo shirts, t-shirts, pants, and shorts
- Contract manufacturing for branded apparel customers
- PPE manufacturing and trading
- Fabric/fiber supply via Jerash Newtech JV

## Customers

Jerash sells primarily to large branded apparel companies and retailers that outsource production rather than own factories. Its customer base is concentrated in well-known global brands, with VF Corporation representing the largest relationship and other customers including New Balance, G-III, Hugo Boss, American Eagle, Skechers, and related trading partners.

- **VF Corporation brands** (primary) — Manufactured apparel sold directly and indirectly under The North Face, Timberland, and Vans brands.
- **Other global branded apparel companies** (primary) — Brands such as New Balance, G-III, Hugo Boss, American Eagle, Skechers, and others buy custom garments to supplement their sourcing base.
- **Retail and licensing partners** (secondary) — Retailers and licensees that need reliable factory capacity, sample development, and on-time delivery for seasonal programs.
- **PPE buyers and traders** (emerging) — Customers and trading counterparties for protective equipment products, a smaller and less central business line.

- Global apparel brands outsourcing knitwear and outerwear production
- VF Corporation is the largest customer relationship
- Customers buy to access low-cost, scalable manufacturing capacity
- Retailers and brand owners rely on Jerash for quality and delivery
- PPE and trading customers add a smaller, more opportunistic revenue stream

## Geography

Jerash’s manufacturing footprint is concentrated in Jordan, where its factories and warehouses are located in Al Tajamouat Industrial City and Al-Hasa County. Revenue is heavily exposed to the United States, while China/Hong Kong, Korea, Jordan, and other markets contribute smaller shares through sales, sourcing, and support activities.

- **United States** (85%) — 10-Q FY2025 nine months ended Dec. 31, 2025
- **China (including Hong Kong)** (10%) — 10-Q FY2025 nine months ended Dec. 31, 2025
- **Korea** (2%) — 10-Q FY2025 nine months ended Dec. 31, 2025
- **Jordan** (1%) — 10-Q FY2025 nine months ended Dec. 31, 2025
- **Others** (2%) — 10-Q FY2025 nine months ended Dec. 31, 2025

- Manufacturing is centered in Jordan, near Al Tajamouat Industrial City and Al-Hasa County
- U.S. customers account for the vast majority of revenue
- Hong Kong and China support sales, merchandising, and procurement
- Korea appears as a growing revenue market in recent interim reporting
- Jordan exposure reflects local production, labor, and operating concentration

## Strategy

Jerash is expanding production capacity in Jordan to support future sales growth and to secure larger commitments from existing customers. Management is also broadening the customer base, adding new brands, and using joint ventures and support offices in Hong Kong and China to strengthen sourcing, merchandising, and sales execution.

- **Increase manufacturing capacity in Jordan** (medium-term) — Higher capacity is needed to support new customer wins and larger orders from existing brands.
- **Broaden the customer base** (short-term) — Reducing dependence on VF Corporation lowers revenue concentration and pricing pressure.
- **Improve sourcing and merchandising support** (medium-term) — Support offices help manage samples, procurement, and customer responsiveness across Asia.

- Expand Jordan production capacity to meet expected demand
- Win additional brand customers to reduce concentration risk
- Deepen relationships with existing customers through service and delivery
- Use Hong Kong and China support functions for sourcing and merchandising
- Add selective PPE and fabric-related businesses to diversify revenue

## Risks

Jerash is highly exposed to customer concentration, with VF Corporation accounting for a large share of sales and a loss or slowdown at any major brand quickly affecting volumes. The business is also exposed to Jordan-specific operating and geopolitical risk, since production is concentrated in one country and the company has limited insurance for war or terrorism-related disruptions.

- **Customer concentration** [critical] — VF Corporation represented about 65% of fiscal 2025 sales, so any volume or sourcing change would materially affect revenue.
- **Geopolitical and country concentration risk in Jordan** [high] — Most production is located in Jordan, so unrest, conflict, or logistics disruption could halt manufacturing and shipments.
- **Competitive pricing pressure** [high] — Apparel manufacturing is highly competitive and customers can shift orders to lower-cost suppliers.
- **Capacity utilization risk** [medium] — New factories and capex only pay off if customer demand grows as planned; underutilization would hurt margins.

- Heavy dependence on VF Corporation and other large brand customers
- Pricing pressure in a competitive global apparel manufacturing market
- Jordan concentration creates operational and geopolitical exposure
- Customer demand swings can leave capacity underutilized
- Capital spending depends on customer commitments and market response

## Accounting

Jerash recognizes revenue on a gross basis for VF Corporation because it is treated as the principal and bears inventory risk before transfer to the customer. Investors should also watch the timing of revenue and margin recognition across seasonal apparel programs, as well as the accounting for capitalized factory expansion projects and any impairment risk if customer demand does not materialize.

- **Principal vs agent revenue presentation** — Inflates reported revenue and cost of sales versus a net presentation
- **Capital expenditure and fixed asset accounting** — Higher depreciation and potential impairment if growth assumptions weaken
- **Seasonality and order timing** — Quarterly revenue and margin volatility

- Gross revenue presentation for VF Corporation affects reported sales scale
- Inventory risk and pricing control support principal accounting treatment
- Seasonal apparel orders can create quarter-to-quarter revenue swings
- Capitalized factory and dormitory projects affect depreciation and asset values
- No material critical accounting estimates were identified in recent filings

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*Last updated: 2026-04-28T20:19:03.773776+00:00*