While starting up its new shoe manufacturing facility in Solo, Indonesia, Stella International Holdings Limited is already planning to add a second factory to make 15 million pairs a year in the country, following a $120 million investment from its largest client, which represented 34 percent of its revenues last year.
With all its plants at full capacity now and its ongoing shift to more expensive products, the Chinese shoemaker is anticipating higher profits this year. In 2021, its net income soared to $90,838,000 from $1,164,000 in 2020, as the gross margin rose by 2.8 percentage points to 20.0 percent. Total revenues increased by 36 percent to $1,540.6 million, and average selling prices went up by 5 percent to $27.10 per pair.
Sales of athletic shoes increased by 29 percent, representing 40 percent of manufacturing revenues, and casual shoes rose by 30 percent to 34 percent of the segment’s turnover. While Fashion gained 28 percent and accounted for 16 percent of sales, Luxury jumped by 137 percent to represent 10 percent of the manufacturing segment.
Sales grew at double digits in all the regions. They rose by 26 percent in the U.S., by 36 percent in Europe, by 69 percent in China, by 34 percent in the rest of Asia and by 29 percent elsewhere.
Revenues from the company’s own Stella Luna brand went down by 5 percent to $15.7 million.
