Companies

Stella Holdings reports full-year results, outlines next three-year plan

Mar 25, 2026 Hong Kong

The Hong Kong-based group reported modest revenue growth but lower profits in 2025 amid production inefficiencies and tariff pressures. It also unveiled a new three-year plan to promote long-term growth

“In 2025, we navigated a year marked by stronger macroeconomic headwinds and constant shifts in the global tariff landscape. Yet demand for our products and our diversified manufacturing capacity remained strong, demonstrating both our resilience and the strength of our relationships with customers”, said Chi Lo-Jen, Chief Executive Officer.

Last year, Stella Holdings reported a 3.8% increase in shipment volume, which translated into a 1.6% year-on-year revenue increase to 1.57 billion US dollars. This growth was driven by the sports segment.

However, overall performance was affected by production efficiency shortfalls related to scaling up production facilities in Indonesia and the Philippines. Tariff support was also provided to certain US customers to help them pass on price adjustments. Consequently, Stella recorded a net profit of 137 million US dollars, compared to 170.1 million US dollars in 2024.

Next Three-Year Plan (2026-2028)

The footwear manufacturer revealed that its 2026–2028 plan focuses on expanding partnerships in the luxury and high-end fashion sectors, diversifying revenue streams by attracting new customers in the sports sector and strengthening innovation by establishing an R&D base in Vietnam.

Stella Holdings is also ramping up production at new factories in Indonesia, Bangladesh and Vietnam, increasing capacity by around 20 million pairs, while improving execution following earlier challenges.

Additionally, the company intends to grow its handbag and accessories business, which it considers a key growth driver, following the acquisition of a high-end facility in Vietnam.

“As we embark on our second Three Year Plan (2026 – 2028) to accelerate long term growth and margin expansion, our foremost priority is the commissioning and orderly ramp up of our three new manufacturing facilities and completing a new R&D and product development hub in Vietnam”, summarised Lawrence Chen, Chairman of the Group.

He concluded: “We are confident in our ability to minimise ramp-up risks by applying the lessons we learned in 2025, including strengthening production quality training, enforcing greater discipline in production planning and material utilisation, and enhancing upstream quality control”.

Image Credits: Jakub Zerdzicki on Unspash

Hong Kong Companies Footwear Results Stella Year Results