Jerash Holdings reported fiscal 2026 third‑quarter revenue of $41.8 million, an 18.0% year‑over‑year increase driven by new customer wins in the United States, Europe, and Korea. The company’s top‑line growth was supported by a 12% rise in its high‑margin custom sportswear contracts and a 9% uptick in sales to its long‑standing global brand partners.
Net income for the quarter rose to $1.2 million, a turnaround from the near‑breakeven result of $6,000 in the same period a year earlier. Earnings per share of $0.09 beat consensus estimates of $0.07 by $0.02, a 28.6% beat. The profit lift was largely due to disciplined cost control, including a 4% reduction in raw‑material costs and a 3% decline in logistics spend, which offset the higher sales volume.
Gross margin expanded to 16.9% from 15.2% year‑over‑year, the largest margin improvement in the company’s history. The increase was driven by a favorable product mix shift toward higher‑margin outerwear and a 5% reduction in water and energy usage from the Jerash Newtech sustainable dyeing joint venture, which lowered production costs.
Operating expenses grew to $5.1 million, up 8% from $4.7 million a year earlier. The rise was primarily due to higher sales‑force compensation linked to the new Korean partner and increased marketing spend to support the expanded product line. Management noted that the expense increase is a short‑term investment to capture growing demand.
Jerash reiterated its fiscal 2026 guidance, maintaining a revenue growth outlook of 15‑20% for the full year and a gross‑margin target of 15‑16%. The company also announced the acquisition of a bank‑owned manufacturing building that will increase production capacity by at least 40% upon completion of renovations by year‑end. CEO Sam Choi said the expansion “will position us to meet demand that currently exceeds our capacity and support the long‑term growth strategy.”
Jerash’s earnings beat and margin expansion have attracted positive attention from investors, who view the company’s disciplined cost management and strategic capacity buildout as strong indicators of continued upside potential.
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