Companies

Stella Holdings with net income growth of 21% in 2024

Mar 26, 2025 Hong Kong

The Hong Kong-based footwear group said its net income grew by 21% year-on-year in 2024, as it continues to invest to meet its Three-Year Plan targets

In 2024, Stella Holdings reported a revenue and shipment volume increase of 3.5% and 8.2%, respectively, to 1.5 billion US dollars and 53 million pairs, as compared to the previous year – the performance of the Sports and Fashion categories drove this result. However, the average selling price declined year-over-year due to a higher proportion of sports products, which have a lower ASP, and raw material price deflation.

The company’s full-year operating margin increased from 10.7% to 11.9% (excluding changes in the fair value of financial instruments) thanks to strategic initiatives to attract and expand the customer base, optimise production capacity and improve efficiency and operating leverage

As a result, Stella’s net income increased by 21.2% to 170.1 million US dollars, while adjusted net income reached 171.2 million US dollars (2023: 147.6 million US dollars). The adjusted net income margin improved to 11.1% from 9.9% in 2023.

This is the second year in a row that Stella Holdings has exceeded the two targets of its Three-Year Plan, achieving a 10% operating margin and maintaining low teens annualised growth in profit after tax.

At the end of December the company’s net cash position was 417.6 million US dollars, an increase of 45.3% compared to a net cash position of 287.4 million US dollars at the end of December 2023.

“Despite softening consumer sentiment, we are expanding production capacity to meet solid demand from our diversified customer base. While increased U.S. trade tariffs on China may present challenges to the market, most of our customers are leveraging our diversified production base to produce in multiple countries and adopting ‘China-for-China’ production strategies, which will help mitigate potential material impacts on our business”, commented Mr. Chi Lo-Jen, Chief Executive Officer of the Group, looking ahead.

Image Credits: Scott Graham on Unsplash

Hong Kong Footwear Results Stella Strategy Year Results