Stella International Holdings, Ltd., the Hong Kong-based developer, manufacturer and retailer of footwear and leather goods, reported that unaudited consolidated revenue for the three months ended June 30 decreased by approximately 2.8 percent to $431.4 million from $443.9 million in the year-ago period. The company’s unaudited consolidated revenue decreased by approximately 13.4 percent to $716.0 million in the first half, compared to $827.2 million in H1 last year.
Shipment volumes in the second quarter decreased by approximately 6.7 percent year-over-year, which signaled a more moderate decline than the first quarter of 2023, when shipments were off more than 30 percent, due to the reshaping of its product and customer mix as part of the company’s Three-Year Plan (2023-2025).
Shipment volumes in the first half decreased by approximately 18.6 percent year-over-year. Changes to product mix and customer mix mostly drove the increase in ASP during both periods.
Stella said it remains confident of reaching the medium-term goals of its Three-Year Plan of achieving an operating margin of 10 percent and a low-teens annualized growth rate on profit after tax by the end of 2025.
“The relative improvement of our top-line performance in the second quarter versus the first quarter is in line with our expectations for the full year,” Group CEO Chi Lo-Jen stated.
Group Chairman Lawrence Chen added, “We remain committed to our Three-Year Plan and are confident about growing our profitability and achieving ongoing margin expansion in the medium-to-long-term as we continue adding new Luxury and high-end Fashion customers.”
Stella International, Ltd. works with sportswear and casual footwear brands, including Nike, Saucony, Under Armour, Merrell, Timberland, and UGG. The company also designs, develops and manufactures footwear for fashion brands Cole Haan, Kate Spade, Michael Kors, and Tory Burch, as well as high-fashion houses Balenciaga, Balmain, Chloé, Lanvin, Moncler, Off-White, Prada, and Stella McCartney.
