Stella International's revenues for the three months to Sept. 30 decreased by 2.5 percent from the same quarter last year to $443.5 million. However, volumes rose by 4.1 percent, with 15.2 million pairs of shoes shipped by the Chinese company during the period. The company said this was due to lower average selling prices as compared to the year-ago quarter - down by 6.4 percent - because of changes in the product mix.
Over the nine months to Sept. 30, sales grew by 1.4 percent to $1,161 million. Stella attributed its performance since January to increasing demand for “fashion athletic products” and to “stabilizing demand” for its casual and fashion footwear products, although the growth rate gradually normalized in the third quarter.
By region, the group recorded a 41.2 percent sales increase for the quarter in Europe, up to $4.8 million, with same-store sales gaining 33.3 percent.
In July, Stella completed the sale of its 60.0 percent stake in its Chinese retail business to Max Branding. It continues to maintain control over its retail brands - Stella Luna, What For and JKJY by Stella - as well as its retail operations in Europe and other markets.
The group recorded revenues of $36.5 million from its retail operations in China from Jan. 1 up to July 19, when the acquisition by Max Branding was completed.
Looking forward, Stella expects orders for its fashion athletic products to continue to grow at a normal pace. While the management is “cautiously optimistic” about the future demand environment, it will closely monitor potential external risks, particularly the escalation of tensions between the U.S. and North Korea, Brexit negotiations and the push by the U.S. government to introduce new import tariffs on Chinese-made goods.