Chinese shoe manufacturer Stella International posted third quarter results in line with its current three-year plan.
For the three months ended Sept. 30, revenue for its footwear operations rose 1.3 percent to $396.7 million from $391.6 million in the same year-ago period. The company said shipment volume was down 4.3 percent to 13.3 million pairs from 13.9 million pairs a year ago. The decrease in shipment volumes for the third quarter was primarily attributable to the front-loading of production for a specific customer into the first half of 2026 in preparation for the “phased shutdown of our footwear factory in the Philippines, which commenced in July 2026,” Stella said in a statement.
The company also said that the average selling price (ASP) for the quarter rose 6 percent to $29.90 per pair from $28.20 in the same year-ago period. The increase was due to a higher-ASP product mix, particularly in the sports segment, as well as increased raw material costs.
For the nine months, revenue in the footwear manufacturing business rose 1.6 percent to $1.16 billion from nearly $1.15 billion.
“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.
The company said its three-year plan for 2026 to 2028 has a focus on expanding and diversifying the firm’s manufacturing base to support future growth. Stella said its new dedicated factory in Vietnam for a premium sports customer began operations in the third quarter and is “expected to continue ramping up through 2027.” The Vietnam operation plus the existing factory in Solo, Indonesia, will add about 20 million pairs to the company’s total production capacity over the coming years.
“With 2026 set as an investment year, we expect the majority of the profit growth from the strategies outlined in our three-year plan to materialize in the latter part of the 2026-2028 period,” Stella said.
“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 group chief executive officer Chi Lo-Jen.