Companies

Stella Holdings full year revenue declines

Jan 22, 2024 Hong Kong

The footwear manufacturer posted an unaudited consolidated revenue decline of 8.5% in 2023, on a comparable basis to the prior year, but posted a positive performance in the fourth quarter

“The unique, premium products we have developed for our customers are continuing to perform well in the market. 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”, commented Mr Chi Lo-Jen, Chief Executive Officer of the Group.

In the three months ending on the 31^st of December 2023, Stella Holdings’ unaudited consolidated revenue reached 389.5 million US dollars, up by 13.5%, compared to the fourth quarter of 2022.

The shipment volume rose by about 10.9% year-over-year in the last quarter of 2023 to 13.2 million pairs of shoes, “as our differentiated, high-quality footwear products continued to deliver strong sell-through for our customers”, said the company. The average selling price per price increased from 28.2 US dollars to 28.8 US dollars, driven by changes in the product and customer mixes.

Concerning its unaudited business update for the full year, the Hong Kong-based group posted a revenue decline of 8.5% to 1.49 billion US dollars, on a comparable basis to fiscal 2022.

In these twelve months, its shipment volume decreased by about 12.5% year-over-year, “due to the reshaping of our product and customer mix as part of our Three-Year Plan (2023-2025), as well as destocking by some customers”. The average selling per pair, however, rose to 29.7 US dollars from 28.5 US dollars in the prior year, also driven by changes in the product and customer mixes.

Overall, Lawrence Chen, Chairman of the Group, concluded, “we are well on the way towards achieving our operating margin and profit-after-tax targets under our Three-Year Plan, which will allow us to deliver further value for our shareholders”.

Image Credits: Ryan Mac on Unsplash

Hong Kong Footwear Quarter Results Results Shoes Stella Year Results