Stella International has reported a 3 percent increase in net income to 52,378,000 yuan renmimbi (€6.47m-$8.53m) for the six months ended on June 30. Shoe deliveries declined slightly to 23.7 million pairs from 23.8 million pairs in the same period a year ago, but average selling prices rose by 5.6 percent to $28.40 per pairs because of higher leather prices and other manufacturing costs, leading to an increase in total revenues of 3.5 percent to RMB 722.6 million (€89.27m-$117.63m).
The Chinese shoe manufacturer and retailer, which works for the likes of Prada as well as Nike, strengthened costs controls and efficiencies to improve margins during the period. It expanded its manufacturing operations in Indonesia, Vietnam and the Guangxi and Hunan provinces of China. In the longer term, it hopes to provide new services to the leading brands for a one-stop solution.