Companies

Stella Holdings sees volume growth but revenue decline

Apr 23, 2025 Hong Kong

The Hong Kong-based footwear group reported volume growth of 3.4% but a 1.8% decline in manufacturing revenue due to increased sports orders. The company continues to diversify its manufacturing base

“In the face of increasing geopolitical and trade uncertainties, we are working with our customers to support their sell-through by delivering differentiated quality products through our diverse production base”, commented Chi Lo-Jen, Chief Executive Officer of the group.

In the first quarter of 2025, the group’s unaudited consolidated revenue reached 331.0 million US dollars, a decrease of 2.2% on a comparable basis to the same period of last year. Revenue of the manufacturing business decreased by 1.8% year-on-year to 320.5 million US dollars.

Stella’s manufacturing revenue reflects an increase of 3.4% to 12.1 million pairs of shoes shipped and a decrease of 5.0% in the average selling price to 26.4 million dollars due to the higher proportion of sports orders.

“With our non-Sports manufacturing facilities continuing to operate at close to full utilisation, we will drive our quality growth through the ramp-up of our new production factories in Bangladesh and Indonesia, while continuing to meet the profitability and margin goals outlined in our Three-Year Plan”, said Lawrence Chen, Chairman of Stella Holdings.

The group’s operating profit margin reached around 11.9% in 2024, ahead of its Three-Year Plan (2023-2025) targets of a 10% operating margin and a low teens compound annual growth rate in profit after tax by the end of 2025.

Image Credits: Jayde Keroi on Unsplash

Hong Kong Companies Footwear Quarter Results Results Stella