Stella International Holdings Limited (Group), the China-based manufacturer of footwear for Nike, Saucony, Under Armour, Merrell, Timberland, and Ugg, reported that the Group’s unaudited first quarter consolidated revenue increased by 1.9 percent in the 2026 first quarter to $337.4 million from $331.0 million in the year-ago Q1 period.
The results far exceeded the reports from two other major footwear producers in the region, with Feng Tay, one of the longest-tenured manufacturers of Nike footwear, posting a 7.2 percent year-over-year (y/y) revenue decline in the first quarter and Yue Yuen, considered to be one of the largest producers of athletic and outdoor footwear, saw shipment revenues decline 5.5 percent y/y in the 2026 first quarter.
Stella reports in the U.S. dollar ($) currency.
Footwear manufacturing shipment unit volume was down 1.7 percent y/y in the first quarter, reflecting fewer working days due to Ramadan celebrations in Indonesia and Bangladesh earlier in 2026.
Average selling prices (ASPs) increased by 3.8 percent y/y, mainly driven by a higher-ASP product mix within the Sports segment.
“Under our recently announced Three-Year Plan (2026 to 2028), we focus on commissioning and ramping up three new factories in Indonesia, Bangladesh and Vietnam in 2026,” the company noted in its Q1 report. “Together with our existing factory in Solo, Indonesia, these new factories will add approximately 20 million pairs of additional production capacity over the coming years. With 2026 set as an investment year, we expect the majority of profit growth from the strategies outlined in our Three-Year Plan to materialize in the latter part of the 2026-2028 period.”
For the three new factories in Indonesia, Bangladesh and Vietnam, Stella said it expects to commence operations in the second half of 2026.
“In addition, we remain committed to returning additional cash up to US$60 million to shareholders in 2026 through a combination of share repurchases and special dividends, on top of paying regular dividends with a payout ratio of approximately 70 percent (comprising final dividends and interim dividends),” the company wrote.
“2026 is an important investment year, both for our footwear manufacturing business and our handbag and accessories manufacturing business as we enter our new Three-Year Plan (2026–2028),” said Lawrence Chen, chairman of the Group. “Our diversified manufacturing base remains a core differentiator, underpinning both customer retention and new-customer acquisition.”
Group CEO Chi Lo-Jen added, “Despite heightened geopolitical uncertainties, our performance in the first three months of 2026 was largely in line with our expectations. We expect demand from our new Sports and high‑end Fashion customers to remain robust , although we will continue to monitor risks closely.”
Image courtesy Stella International
