Stella International Holdings Limited (Group), the China-based the manufacturer of footwear for Nike, Saucony, Under Armour, Merrell, Timberland and Ugg reported that the Group’s unaudited consolidated revenue increased by 1.5 percent in the fourth quarter to $388.6 million from $385.4 million a year ago.
For the twelve months ended December 31, unaudited consolidated revenues increased by the same 1.5 percent to $1.57 billion from $1.54 billion.
Stella reports in the U.S. dollar ($) currency.
Footwear manufacturing shipment volumes in the fourth quarter were flat year-over-year in the quarter and increased 3.8 percent for the full year, mainly driven by the Sports segment and solid demand from new customers. Average selling prices (ASPs) in both periods decreased due to the growth of the Sports segment, which has lower ASPs.
Stella said it made progress in overcoming the initial challenges associated with the ramp-up and expansion of production facilities in Indonesia and the Philippines during the first half of 2025. The experience gained through these efforts is expected to be beneficial for the commissioning and ramp-up of new production facilities, which are scheduled to commence operations in the second half of 2026.
The company said it remains committed to returning additional cash up to $60 million per year to shareholders in 2025 and 2026, through a combination of share repurchases and special dividends, on top of paying regular dividends with a payout ratio of approximately 70 percent (comp rising final dividends and interim dividends).
Stella International CEO Chi Lo-Jen, said, “We are pleased to end the year with top-line and volume growth, despite the operational efficiency challenges we encountered . We have taken important lessons from t hese challenges, strengthening our resolve to improve operational management. As we ramp up our production capacity, we remain focused on attracting new customers in the Luxury, High – End Fashion and Sports categories.”
Image courtesy Stella International
