Companies

Sports category drives first quarter growth for Stella Holdings

Apr 19, 2024 Hong Kong

The footwear manufacturer has reported an unaudited consolidated revenue increase of 18.9% year-on-year in the first quarter of 2024, mainly due to demand for sports products

“We are pleased to see year-on-year revenue and volume growth in the first quarter led by our Sports customers, as well as the unique, premium products we have developed for customers across all categories which continue to perform well in the market”, commented Mr. Chi Lo-Jen, Chief Executive Officer of the Group.

First Quarter Results

In the first quarter of the current fiscal year, Stella Holdings’ unaudited consolidated revenue (including our manufacturing business, branding business and other businesses) amounted to 338.4 million US dollars, an increase of 18.9% on a comparable basis to the same period of fiscal 2023.

According to the business update, manufacturing business revenue alone rose by 17.6% over the same period last year to 326.3 million US dollars. This was the result of a 21.9% increase in volume to 11.7 million pairs, but a 3.5% decrease in the average selling price to 27.8 dollars, with the sports category driving the company’s growth in the three months to the 31^st of March.

“Although our ASP declined slightly due to the higher proportion of Sports and Casual product orders which have a lower ASP” – explained the CEO of Stella Holdings –, “we are confident that we will continue to meet our margin and profitability targets under our Three-Year Plan.”

With an operating profit margin of 10.7% in 2023, the Group is ahead of schedule to achieve its Three-Year Plan (2023-2025) targets of a 10% operating margin and a low teens annualised growth rate in profit after tax by the end of 2025. In addition, the company is continuing to ramp up its production facility in Solo, Indonesia, and is completing the development of a production facility in Bangladesh to transfer capacity from Vietnam and further improve its product mix.

Image Credits: Olena Bohovyk on Unsplash

Hong Kong Companies Footwear Quarter Results Results Stella