Indonesian expansion will continue as Stella seeks long-term profitability
Footwear group Stella International has reported revenues of $504.5 million in the first half of 2020, a fall of 32% compared to the same period last year.
Over the six-month period, Hong Kong-based Stella shipped 20.4 million pairs of shoes, a decline in volume of 30.8%.
It said these declines were attributable to the covid-19 pandemic.
Commenting on the results, group chairman, Lawrence Chen, said there were signs the situation was improving, although he said Stella’s operating environment remained “highly uncertain”.
Mr Chen said the group would proceed with strategies to attract more sports brands as customers and make athletic and casual shoes for them. He said the group would continue to seek cost efficiencies in its production set-up. He mentioned specifically that this would include further expansion in Indonesia as part of a wider policy of reallocating production capacity away from China.
He said: “This remains essential for our competitiveness and long-term profitability.”
