For the nine months ending September 30, 2023, the company had a decline of 14.3% in unaudited consolidated revenue to US$1.1 billion.

Shipment volumes for the quarter were down by 18.7% year-on-year to 12.2 million pairs, which Stella attributed to a shift in the focus of its customer mix and customer destocking to manage inventory issues. The decline for the nine months as a whole was 18.8% to 35.8 million pairs.

Changes in product and customer mix drove an increase in average selling price (ASP), which was up by 2% in the quarter to US$30.80 and 4.9% in the year so far to US$30.

Despite declines in revenue, the company remains confident in reaching the medium-term goals of its three-year plan (2023-2025) – achieving an operating margin of 10% and annualised profit after tax growth in the low teens.

CEO Chi Lo-Jen said: “Our performance remains in line with our expectations, with the continued transition of our customer mix from the casual to luxury and high-end fashion categories making year-on-year volume and revenue comparisons less pertinent. We expect the ASP for the full year of 2023 to remain elevated as customers request more premium products with higher production complexity.”