Stella Holdings posts 1.2% Q2 revenue uptick to US$449.30 million; targets 20 million-pair capacity expansion with three new factories

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Stella International Holdings Limited (Stella Holdings) reported unaudited consolidated revenue of US$449.30 million for the three months ended 30 June 2026, a 1.2% year-on-year increase. First-half revenue rose 1.5% to US$786.70 million.

The core footwear manufacturing segment contributed US$439.20 million in second-quarter revenue, up 1.4% versus the prior-year period. Shipment volume was broadly stable at 15.6 million pairs, while the average selling price (ASP) held at US$28.20 per pair. For the six-month period, segment revenue improved 1.7% to US$766.60 million on flat volumes of 27.5 million pairs; the ASP edged up 1.8% to US$27.90, reflecting a richer product mix in sports footwear and higher raw material costs.

Under its 2026-2028 Three-Year Plan, Stella Holdings is commissioning three new plants in Indonesia, Bangladesh and Vietnam, complementing its existing facility in Solo, Indonesia. Once fully ramped, the four sites are expected to add about 20 million pairs of annual production capacity. All three new factories are slated to begin operations in the second half of 2026, positioning the Group for anticipated profit acceleration later in the plan period.

Capital management remains a priority: the Board intends to return up to US$60.00 million to shareholders in 2026 through share repurchases and special dividends, in addition to maintaining a regular dividend payout ratio of roughly 70% of earnings.

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