Stella International Holdings Limited (Group), the China-based manufacturer of footwear for Nike, Saucony, Under Armour, Merrell, Timberland, Ugg, and others, reported unaudited consolidated revenue inched up 1.2 percent in the second quarter ended June 30, to $449.3 million, driven by a 1.3 percent increase in pairs.

Stella International reports in the U.S. dollar ($) currency.

Average selling prices (ASPs ) were flat. The company said results were in line with expectations.

For the six months ended June 30 (H1), revenue grew 1.5 percent to $786.7 million from $775.0 million in the year-ago H1 period, with the gain driven by higher selling prices.

With respect to the company’s footwear manufacturing business, shipment volumes in the three months and six months ended June 30 were flat, in line with expectations. ASPs for the six months ended June 30 increased due to a higher ASP product mix within its Sports segment and increased raw material costs.

Stella said under its recently announced Three-Year Plan (2026 – 2028), it is focused on commissioning and ramping up three new factories in Indonesia, Bangladesh and Vietnam in 2026. The three factories are expected to commence operations in the second half of 2026.

Together with its existing factory in Solo, Indonesia, the new factories will add approximately 20 million pairs of additional production capacity over the coming years.

Stella said, “With 2026 set as an investment year, we expect the majority of the profit growth from the strategies outlined in our Three – Year Plan to materialise in the latter part of the 2026 – 2028 period.”

The company further said it “remains committed to returning additional cash up to $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.

Group CEO Chi Lo – Jen commented, “Our performance in the first half of 2026 was within our expectations, even against a backdrop of heightened geopolitical and economic uncertainties. Forward order visibility remains solid, supported by our customers’ ongoing attraction to our diversified manufacturing base and our ability to deliver differentiation, high quality and value.”

Lawrence Chen, chairman of the Group, added, “We remain focused on implementing our new Three-Year Plan (2026 – 2028) . Despite 2026 being an important investment year for the Group, given our strong net cash position, we have both the capability and commitment to return additional cash up to US$60 million to shareholders in 2026 under our ongoing Excess Cash Return Program.”

Beyond athletic and outdoor brands, Stella also sources footwear for luxury brands including Prada, Balenciaga, Balmain, Chloé, Lanvin, Moncler, Off-White, Stella McCartney, and LVMH brand, as well as brands in the contemporary space — Cole Haan, Kate Spade, Michael Kors, Tory Burch, UGG, Rockport, and Clarks.

Image courtesy Stella International Holdings Limited