Stella’s annual operating income rose 120 basis points to 11.9 percent.
The Chinese footwear group Stella Intl improved its operating profit margin, shipping volumes, and revenues for the 12 months ended Dec. 31, surpassing the dual targets of its three-year strategic plan. Stella’s annual operating income rose 120 basis points to 11.9 percent, fueled by an expanded and diversified customer portfolio and the relocation of production facilities. The net profit increased by 21.2 percent to $170.1 million.
Meanwhile, revenue and shipment volumes rose by 3.5 percent and 8.2 percent, respectively, to $1,545.1 million and 53 million pairs, driven by the sports and fashion categories. Stella’s average selling price (ASP) for footwear declined by an unspecified percentage due to higher proportion of sports products that carry lower ASPs and raw material price deflation.
The company is ramping up new production facilities in Solo, Indonesia and Bangladesh in 2025 as part of its strategy to increase capacity for orders of higher-margin products. Profit growth is expected to moderate this year, but Stella anticipates meeting its 10 percent operating margin and low-teens CAGR in Ebit as established in its three-year plan.
