Leatherbiz reports that footwear group Stella International has reported revenue of $1.2 billion for the first nine months of 2019, almost flat with the figure for the corresponding period last year. Its third-quarter figures were down by 4.7% year on year.
Stella explained the shortfall in the third quarter by pointing out that it is focusing on margin improvement rather than growth in volume. “Global trade frictions did not have any material impact on the group’s operations during the periods under review,” it said, in reference to the dispute between China and the US.
In an effort to grow its margins, it said it would move more production capacity away from China to south-east Asia. Specifically, it explained it would do this by “ramping up our new manufacturing facility in Vietnam”.