Jerash Holdings Secures Major Initial Order for Large Multinational Retail Corporation Through New Strategic Collaboration with South Korean Apparel Group, Hansoll Textile
- Secured major order for over 3 million pairs of girls' shorts through new strategic partnership
- Operating at full capacity through December 2025
- Standard margins achieved through FOB delivery versus traditional contract manufacturing
- Strategic positioning in Jordan with beneficial trade agreements with US, EU, UK, and Canada
- Potential for additional business opportunities with Hansoll Textile and the retail corporation
- None.
Insights
Jerash secures major order of 3M+ units, boosting capacity utilization through December while diversifying away from China-dependent supply chains.
This strategic collaboration between Jerash Holdings and South Korean apparel group Hansoll represents a significant business development for the NASDAQ-listed manufacturer. The initial order for more than three million pairs of girls' shorts for a major U.S. retail corporation is noteworthy for several reasons.
The timing of this deal is particularly advantageous as it addresses Jerash's traditionally slower second-half fiscal period. By securing production that will run through December, the company has effectively eliminated seasonal downtime, operating at full capacity through year-end. This operational efficiency directly enhances factory utilization rates and improves fixed cost absorption.
The FOB (free-on-board) delivery model specified in the agreement is financially significant. This arrangement allows Jerash to capture standard margins rather than the typically lower margins associated with third-party contract manufacturing. The company will assume responsibility for goods until loaded onto shipping vessels, potentially increasing both revenue recognition and profit margins compared to alternative arrangements.
This deal also highlights Jerash's strategic positioning amid ongoing global trade tensions. With manufacturing facilities in Jordan, the company benefits from the country's free trade agreements with the EU, UK, and Canada, along with favorable U.S. tariff treatment. This provides a compelling alternative for brands seeking to diversify production away from China and Southeast Asia, where tariff uncertainties and trade restrictions have created supply chain vulnerabilities.
The recommendation from a high-profile retail corporation to one of its largest vendors (Hansoll) suggests Jerash has established credibility and quality standards that meet the requirements of major market players. This endorsement could potentially lead to additional business opportunities and partnerships as more companies seek manufacturing alternatives in geopolitically advantageous locations.
FAIRFIELD, NJ / ACCESS Newswire / June 12, 2025 / Jerash Holdings (US), Inc. (NASDAQ:JRSH) (the "Company" or "Jerash"), which manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands, announced today it has secured a major initial order for one of the largest U.S.-based multinational and omnichannel retail corporations through a newly formed strategic collaboration with Hansoll Textile Ltd. ("Hansoll"), a leading South Korea-based global apparel group that supplies a wide range of garments to major international retail and fashion brands.
The order, consists of more than three million pairs of girls' shorts, represents one of the largest initial orders in Jerash's history. Jerash expects to start production in August, for FOB (free-on-board) delivery in the third and fourth quarters of 2025.
"Jerash has built a strong reputation as a high-quality, reliable and flexible manufacturer for global apparel brands and we are honored that the high-profile retail corporation recommended Hansoll, one of its largest apparel vendors, to work with us," said Sam Choi, Jerash's chairman and chief executive officer. "Following this initial order, it is our mutual intention to discuss additional synergies and identify ways we can continue to grow together.
"By delivering these products on an FOB basis, we are attaining standard margins, compared with traditional contract manufacturing through a third-party. This order creates a strong opportunity for potential upside during Jerash's seasonally slower period in the second half of our fiscal year. As a result, we are now operating at full capacity through the end of December.
"Amid the ongoing tariff uncertainty, we have been receiving an increasing number of inquiries from brands and large apparel manufacturers seeking to maintain competitiveness in a rapidly evolving global trade landscape. Many companies are actively exploring manufacturing alternatives beyond China and Southeast Asia. With long established operations in Jordan, Jerash is well-positioned to meet this demand, benefiting from the country's free trade agreements with the EU, U.K. and Canada, as well as favorable tariff treatment currently in place from the U.S.," Choi added.
About Jerash Holdings (US), Inc.
Jerash Holdings (US), Inc. manufactures and exports custom, ready-made, sportswear and outerwear for leading global brands and retailers, including VF Corporation (which owns brands such as The North Face, Timberland, and Vans), New Balance, G-III (which licenses brands such as Calvin Klein, Tommy Hilfiger, DKNY, and Guess), American Eagle, and Skechers. Jerash's existing production facilities comprise six factory units and four warehouses, and Jerash currently employs approximately 6,000 people. Additional information is available at www.jerashholdings.com.
CONTACT:
PondelWilkinson Inc.
Judy Lin or Roger Pondel
310-279-5980
jlin@pondel.com
SOURCE: Jerash Holdings (US), Inc.
View the original press release on ACCESS Newswire
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