In a business update, Stella International said its revenues for the first quarter increased by 15.3 percent to $303.4 million. This was mainly due to a favorable comparison base with last year’s first quarter, when the Chinese company’s revenues were affected by store and factory closures, as well as lower demand, due to the Covid-19 pandemic.
In the latest quarter, Stella’s footwear manufacturing revenues advanced by 16.8 percent to $299.8 million, including a 9.1 percent increase in the number of pairs to 12.0 million. The average selling price rose by 7.3 percent to $25.00, driven by changes in the product mix and customer mix.
Steady volume growth and margin improvement will be the company’s main priorities in 2021. It expects that its product mix, which was more heavily weighted toward the Sports category during 2020, will start to normalize as the Fashion, Luxury and Casual categories rebound. One of the priorities this year will be the expansion of its manufacturing facility dedicated to sports footwear in Vietnam. It will also continue to work with customers who are devemping new categories such as athleisure.
Stella is cautiously optimistic for the summer season, but it will depend on the progress of vaccination programs around the world. This year’s quarterly comparisons will also be impacted by left-over inventory built up during the pandemic.
As of March 31, 2021, the company’s financial position remained solid with cash on hand and total undrawn bank facilities of about $270 million.