Companies

Stella International posts modest first-quarter growth as it ramps up capacity

Apr 22, 2026 Hong Kong

The Hong Kong-based group highlighted that it is ramping up capacity in Indonesia, Bangladesh, and Vietnam as part of its 2026 ‘investment year’, while reporting modest growth in the first quarter

“2026 is an important investment year, both for our footwear manufacturing business and our handbag and accessories manufacturing business as we enter our new Three-Year Plan (2026–2028)”, said Mr. Lawrence Chen, Chairman of the Group.

The company’s three-year plan focuses on ramping up production at three new factories in Indonesia, Bangladesh, and Vietnam. Together with the existing facility in Solo, these factories are expected to increase capacity by around 20 million pairs over time.

As 2026 has been earmarked for investment, most of the anticipated profit growth will occur towards the end of the period, when the new factories are expected to start operating.

This statement was made as the company reported positive, albeit moderate, results in the first quarter of the year. Stella’s unaudited consolidated revenue increased by around 1.9% to 337.4 million US dollars, as compared to the same period last year.

The volume of footwear shipments fell by around 1.7% in the period due to the earlier celebrations of Ramadan in Indonesia and Bangladesh, resulting in fewer working days. Meanwhile, average selling prices increased by 3.8%, supported by a higher-priced sports mix.

“Despite heightened geopolitical uncertainties, our performance in the first three months of 2026 was largely in line with our expectations. We expect demand from our new Sports and high end Fashion customers to remain robust, although we will continue to monitor risks closely”, added Mr. Chi Lo-Jen, Chief Executive.

Source and Image Credits: stella.com.hk

Hong Kong Companies Footwear Quarter Results Results Stella