Companies

Stella Holdings posts solid first half

Aug 1, 2025 Hong Kong

In the second quarter, the Hong Kong-based footwear manufacturer recorded an improvement on the previous quarter, boosted by higher sports demand. This led to a solid performance in the first half of the year

In the three months to the 30^th of June, the group’s unaudited consolidated revenue amounted to 444.0 million US dollars, a 2.9% increase on a comparable basis to the same period in 2024.

This figure includes a 4.1% increase in shipments to 15.4 million pairs, as well as a 1.7% decrease in the average selling price to 28.2 US dollars. This resulted in footwear manufacturing revenue of 433.0 million US dollars, which reflects an increase of 2.5% year-over-year. In the first quarter, the footwear manufacturing business recorded a 1.8% decrease year-over-year decrease in the footwear manufacturing business.

Overall, Stella Holdings reported a first half unaudited consolidated revenue growth of approximately 0.7% to 775.0 million US dollars, as compared to the same period of last year. In these six months, shipments grew by 3.8% to 27.5 million pairs and the average selling price declined by 3.2% to 27.4 US dollars, resulting in a footwear manufacturing revenue growth of 0.6% to 753.5 million.

The company recalled that the average selling price decreased in both periods due to a higher proportion of orders for sports products.

Despite short-term margin pressures from production ramp-ups in Indonesia and the Philippines, and ongoing macroeconomic uncertainties, Stella remains committed to its Three-Year Plan target of achieving a 10% operating margin and a low-teens compound annualised growth rate in profit after tax by the end of 2025.

“We are expanding and ramping up new production lines in Indonesia and the Philippines to catch up with increased customer demand. Worker utilisation and efficiency will slowly improve over the course of the year. We remain focused on partnering with our customers to navigate market challenges, capitalising on the strength and flexibility of our diversified production base”, commented Chi Lo-Jen, Chief Executive Officer of the group.

Image Credits: Andrew Jephson on Unsplash

Hong Kong Footwear Manufacturing Quarter Results Results Stella