Stella International (1836) Q3 2024 TU earnings summary

Executive summary

• Consolidated revenue for Q3 2024 rose 0.6% year-over-year to US$389.7 million; nine-month revenue up 5.1% to US$1,159.7 million.

• Shipment volumes increased 5.7% in Q3 and 10.1% for the nine months, mainly driven by the Sports category.

• Average selling price (ASP) declined due to a higher proportion of Sports products and raw material price deflation.

Financial highlights

• Footwear manufacturing revenue for Q3 2024 was US$378.0 million, up 0.2% year-over-year; nine-month revenue reached US$1,126.8 million, up 4.9%.

• Q3 shipment volume was 12.9 million pairs, up 5.7%; nine-month volume was 39.4 million pairs, up 10.1%.

• Q3 ASP fell 4.9% year-over-year to US$29.3 per pair; nine-month ASP dropped 4.7% to US$28.6 per pair.

Outlook and guidance

• Revenue and shipment growth moderated in Q3 due to earlier-than-planned shipments in Q2.

• The Group is ahead of schedule on its Three-Year Plan (2023-2025) targets: 10% operating margin and low-teens CAGR on profit after tax by end-2025.

• Confident in meeting or surpassing operating profit margin targets, as already achieved in 2023 and H1 2024.