Companies

Stella Holdings posts a slight improvement in the second quarter

Jul 14, 2023 Hong Kong

The Hong Kong-based footwear manufacturer posted a slower decline in its consolidated revenue and shipment volume in the second quarter of the year, as compared to the previous quarter

In the second quarter of fiscal 2023, Stella's unaudited consolidated revenue decreased by about 2.8%, totalling 431.4 million US dollars, on a comparable basis to the same months of last year. This performance stands out positively from the 25.8% revenue decline seen in the first quarter of the year.

The company's shipment volume decreased by 6.7% year-over-year in the three months to the 30^th of June, reflecting a “more moderate decline” than the one recorded in the first quarter (by 31.4%). Stella attributed this trend to the “reshaping” of its product and customer mix.

The average selling price per pair in this period increased to 30.2 US dollars from the 28.7 US dollars recorded in the same period of fiscal 2022.

First Half Results

In the six months to the 30^th of June, the footwear manufacturer saw its unaudited consolidated revenue decrease by approximately 13.4% to 716.0 million US dollars, on a comparable basis to the same period of the previous year, with its shipment volume declining by about 18.6% year-over-year. In addition, the average selling price per pair for the first half of the year grew to 29.6 US dollars from 27.8 US dollars in a similar period of 2022.

Outlook

Altogether, says Mr. Chi Lo-Jen, Chief Executive Officer of the Group, “the relative improvement of our top-line performance in the second quarter versus the first quarter is in line with our expectations for the full year.”

The company is also confident that it will achieve an operating margin of 10% and a low-teens annualised growth rate on profit after tax by the end of 2025, in line with its Three-Year Plan (2023-2025).

Image Credits: Markus Winkler on Unsplash

Hong Kong Companies Footwear Manufacturing Quarter Results Results Shoes Stella