Hong Kong’s Stella International Holdings Limited, a leading developer and manufacturer of footwear and leather goods, has reported a slight decrease in its unaudited consolidated revenue for the second quarter (Q2) of fiscal 2023 (FY23), which ended on June 30, 2023. The revenue decreased by approximately 2.8 per cent to $431.4 million, compared to $443.9 million during the same period in the previous fiscal year.

For the first half (H1) of FY23, the group’s unaudited consolidated revenue saw a drop of approximately 13.4 per cent, landing at $716 million, as opposed to $827.2 million in H1 FY22, the company said in a press release.

The shipment volumes for Q2 FY23 also witnessed a reduction, decreasing by around 6.7 per cent year-on-year (YoY). However, this decline was less severe than what was observed in the first quarter of FY23, marking an improving trend. This was largely attributed to the strategic reshaping of the company's product and customer mix under its three-year plan (2023-2025).

In the six months ending June 30, 2023, shipment volumes decreased by approximately 18.6 per cent year-on-year.

Stella International expects to achieve the medium-term goals of its three-year plan. The company aims to attain an operating margin of 10 per cent and a low-teens annualised growth rate on profit after tax by the end of 2025.

“The relative improvement of our top-line performance in the second quarter versus the first quarter is in line with our expectations for the full year,” said Chi Lo-Jen, chief executive officer.

“We remain committed to our three-year plan and are confident about growing our profitability and achieving ongoing margin expansion in the medium-to-long-term as we continue adding new luxury and high-end fashion customers,” said Lawrence Chen, chairman.

Fibre2Fashion News Desk (DP)

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