Stella International Holdings Limited reported that 2023 fourth quarter revenues increased approximately 13.5 percent to $389.5 million, compared to $343.1 million in the prior-year quarter. The increase was the first positive revenue quarter since Q3 2022.
For the 2023 full year, the developer, manufacturer and retailer of footwear and leather goods said that unaudited consolidated revenue decreased by approximately 8.5 percent to $1.49 billion, compared to $1.63 billion in the prior year.
Shipment volumes for the fourth quarter increased by approximately 10.9 percent year-over-year (YoY) to 13.2 million pairs. The company said its differentiated footwear products continue to deliver strong customer sell-through. Average selling prices (ASPs) were $28.8 per paid in Q4, compared to $28.2 in the prior-year corresponding period.
Shipment volumes for the full year decreased by approximately 12.5 percent YoY to 49.0 million pairs, which the company said was due to the reshaping of its product and customer mix as part of its Three-Year Plan (2023 to 2025) and de-stocking by some customers during the year.
Full-year ASPs were up more than a dollar, increasing to $29.7 per pair, compared to $28.5 per pair in 2022.
The increase in ASPs during both periods was driven mainly by changes to product and customer mix as the company moved to manufacture more premium footwear and brands.
“We remain confident of reaching the medium-term goals under our Three-Year Plan of achieving an operating margin of 10 percent and a low-teens annualized growth rate on profit after tax during this three-year period,” the company wrote.
“The unique, premium products we have developed for our customers are continuing to perform well in the market, added Group CEO Chi Lo-Jen. “Some customers wanted to replenish their inventory and requested earlier shipments in the last quarter of 2023, leading to a better-than-expected performance and further demonstrating the success of our strategy.”
Image courtesy Stella International
