Footwear company Stella International Holdings is expecting a “considerable” decrease in its net profit for the six months ending June 30, it has warned the Hong Kong Stock Exchange.
It attributes this to a drop in shipment volumes, particularly in the casual footwear segment.
Average selling prices have also declined with falling raw material prices, particularly for leather, says the group.
There has also been pressure on prices because of competition, plus less production efficiency because of lower use of the group’s non-sports footwear factories.
Final results are expected to be announced in August.