Hong Kong-based Stella Intl. Holdings Limited suffered a nearly 26 percent drop in Q1 revenues to $277.4 million from $374.6 million. Year-over-year footwear shipments declined by 31 percent to 9.6 million pairs from 14.0 million in the year-ago period as certain sport and casual customers pulled back on ordering to clear out their excess inventories. The group did realize 7.5 percent year-over-year growth in average selling price (ASP) to $28.80 per pair from $26.80.
Stella, without offering specifics, said its unaudited consolidated Q1 profit was in line with expectations and that it remained confident about reaching medium-term goals in its three-year growth plan that call for an operating margin of 10 percent and low-teens annualized profitability growth by the end of 2025.
CEO Chi Lo-Jen, in a statement, said Stella expects its H1 order book to be impacted as some major customers “deal with inventory challenges,” but added, “the removal of Covid-19 restrictions in China […] may lead these customers to increase their ordering activity” in H2.
