Companies

Stella International reports modest revenue growth in the third quarter

Oct 19, 2026 Hong Kong

The Hong Kong-based group reported a 2.2% increase in revenue in the third quarter. It also reiterated plans to add around 20 million pairs of production capacity through new factories in Vietnam, Indonesia and Bangladesh

In the third quarter of the 2026 financial year, Stella International Holdings recorded an unaudited consolidated revenue of 412.9 million US dollars, which reflects an increase of 2.2% compared to the same period of last year.

The footwear manufacturing business in particular generated revenue of 396.7 million US dollars during the quarter, reflecting a 1.2% year-on-year increase.

This growth was driven by a 6.0% increase in the average selling price (ASP), reflecting a shift towards higher-ASP products, particularly in the sports segment, as well as higher raw material costs. However, shipment volumes declined by 4.3%, which offset some of the impact of higher selling prices on revenue.

The decrease in shipments during the period ending on the 30^th of September was mainly due to production for a casual customer being brought forward to the first half of the year, ahead of the phased closure of the company’s footwear factory in the Philippines, which began in July.

Nine-Month Summary

In the first nine months of the year, the company recorded total unaudited consolidated revenue of 1.19 billion US dollars, a 1.7% decrease compared to the same period in 2025. Revenue from the footwear manufacturing business was 1.16 billion US dollars, marking a 1.6% year-on-year increase. This was driven by a 1.4% decrease in shipment volumes and a 2.9% rise in the average selling price.

Capacity Expansion

Stella also provided an update on its Three-Year Plan (2026–2028), which involves expanding and diversifying its manufacturing base in order to support future growth.

A new factory in Vietnam, which will serve a premium sportswear customer, began operations in the third quarter of 2026, with production expected to increase throughout 2027. Two additional factories in Indonesia and Bangladesh are scheduled to open in the fourth quarter of 2026. Along with the company’s existing factory in Solo, Indonesia, these new facilities are expected to increase production capacity by around 20 million pairs.

“Our capacity expansion investments in 2026 have positioned Stella for its next phase of growth, in line with our current Three-Year Plan. The opening of our new Vietnam facility, together with our soon-to-open factories in Indonesia and Bangladesh, will enhance our ability to serve leading global brands and respond to their evolving needs, while enabling us to capture higher-value opportunities”, said Chi Lo-Jen, Chief Executive Officer of the Group.

Image Credits: Annie Spratt on Unsplash

Hong Kong Companies Footwear Investment Manufacturing Quarter Results Results Stella