In the third quarter of 2022, Stella International, a Southeast Asia shoe manufacturer that is also a retailer, increased overall revenues by 4.8 percent year-over-year to $460.5 million, with manufacturing revenues rising to $453.6 million from $431.6 million. In the first nine months of the year, revenues increased by 13.5 percent to $1,288 million, with manufacturing sales increasing to $1,261 million from $1,115 million.
Shipments in the third quarter rose by 0.7 percent to 15.0 million pairs, while the average selling price per pair grew to $30.2 from $28.9 a year earlier. In the nine-month period, shipments grew by 6.5 percent to 44.1 million pairs supported by the sports and fashion footwear segments, and the average selling price increased to $28.6 per pair from $27.0. The higher selling prices were driven by changes to the product and customer mix as well as higher raw material prices.
In the coming months, the Chinese footwear manufacturer will be facing a tougher comparison basis as its manufacturing business operated at full capacity in the second half of 2021.
“Macroeconomic headwinds, particularly Covid-19 related lockdowns in China that are impacting consumer demand, will continue to weigh on the confidence of some of our customers. At the same time, our top-line growth in the second half of the year is facing pressure from high base effects. But we expect our margin-expansion strategy will continue to deliver benefits in the coming quarters and beyond,” the CEO, Chi Lo-Jen, said in a statement.
Stella pointed out that the ramp-up of its new manufacturing facility in Solo, Indonesia, remains on track.
