The footwear manufacturer’s revenue rose 1.3 percent as higher average selling prices offset lower shipment volumes, while new facilities in Vietnam, Indonesia and Bangladesh support its 2026–2028 growth plan
Stella International reported a 1.3 percent increase in footwear manufacturing revenue for the third quarter ended Sept. 30, reaching $396.7 million compared with $391.6 million a year earlier. Shipment volume declined 4.3 percent to 13.3 million pairs, while higher average selling prices, particularly in the sports segment, helped support revenue growth.
The Hong Kong-listed footwear manufacturer attributed the lower shipment volume primarily to production being front-loaded into the first half of 2026 for a specific customer preparing for the phased shutdown of Stella’s footwear factory in the Philippines, which began in July. The company also reported that its average selling price rose 6 percent to $29.90 per pair from $28.20 a year earlier, reflecting a higher-value product mix, particularly in sports footwear, alongside increased raw material costs.
For the first nine months of 2026, revenue from footwear manufacturing increased 1.6 percent to $1.16 billion from nearly $1.15 billion in the same period last year. The results were in line with the company’s three-year plan for 2026 to 2028, which prioritizes expanding and diversifying its manufacturing base to support future growth.
“As we reach the end of our current investment cycle, we remain focused on investing further in innovation and product development to drive our ongoing performance, as well as our ability to deliver for shareholders,” said Lawrence Chen, group chairman.
Stella’s investment strategy includes a new dedicated factory in Vietnam serving a premium sports customer, which began operations in the third quarter and is expected to continue ramping up through 2027. Together with its existing factory in Solo, Indonesia, the facility is expected to add approximately 20 million pairs to the company’s total production capacity over the coming years. Additional factories in Indonesia and Bangladesh are also expected to strengthen its manufacturing network.
“The opening of our new Vietnam facility, together with our soon-to-open factories in Indonesia and Bangladesh, will enhance our ability to serve leading global brands and respond to their evolving needs, while enabling us to capture higher value opportunities,” said Chi Lo-Jen, group chief executive officer.
The company expects 2026 to remain an investment year, with the majority of profit growth from its three-year plan materializing in the latter part of the 2026–2028 period. The strategy reflects Stella’s focus on increasing manufacturing capacity, developing higher-value products and positioning its operations to meet demand from global footwear brands.
