Stella International cautiously optimistic after Q2 results

Hong Kong
Published:  15 July, 2021

Hong Kong headquartered, Stella International Holdings Limited a leading manufacturer and retailer of quality footwear and leather goods products, announced on July 15 its unaudited second quarter business update for the three months and six months ending June 30, 2021. 

Sales and revenue were up for the three months ended June 30 and increased by 36.1% to US$695.5 million (2020: US$511.2 million) for the six months ending June 30 compared with the corresponding periods of last year. This was mainly attributable to a low base in the first six months of 2020, which was heavily impacted by the Covid-19 pandemic, as well as a recovery of orders in 2021. 

Shipment volumes in the three months and six months to June 30 increased by approximately 54.3% and 29.9% year-on-year, most of which was also attributable to a low base in 2020. 

Looking forward, Stella International says that it remains cautiously optimistic about orders in the second half of the year with the pace of volume and revenue recovery likely to moderate due to a higher base in the second half of 2020. Year-on-year comparison of quarterly shipment volumes for the rest of the year will also remain uneven due to the significant impact the pandemic had on the normal seasonality of shipment volume and product mix in 2020. While visibility for the fourth quarter is becoming more certain, it remains dependent on the development of the pandemic and the progress of vaccination programmes around the world. 

Looking ahead the company plans to prioritise margin improvement, as well as steady volume growth on an annual basis by capitalising on promising opportunities in the Sports and Luxury product categories.