Stella Group keeps a close eye on trade tensions
13/07/2018
It shipped more shoes over the half-year period, 29 million pairs in total, an increase of 7.1%, but said the average price per pair of the shoes it sold dropped by 6.5% to $26.10 per pair.
Chief executive, Lawrence Chen, said Stella is committed to continuing to improve the quality of the shoes it produces, but he warned that the group will “selectively reduce” production capacity in some locations.
Stella is also concerned about the escalating trade tension between the US and China. Chairman, Jack Chiang, said on releasing the most recent results: “Although footwear products have yet to be targeted as part of the escalating trade frictions between the US and China, we will continue to closely monitor the risk these frictions may pose to our operations. We believe that our current strategy of reducing capacity in some locations while focusing on improving our product allocation and processes will offer the best defence against any future volatility.”
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