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Article Date: March 2021
Word Count: 307

Stella Net Falls in 2020 on Covid Expenses


Net income at the footwear manufacturer plunged 99% in the pandemic year to $1,064,000 from $95,918,000, on revenues that fell 26% to $1,135,880,000 from $1,544,830,000. The profit decline was partially due to $51.3 million in discrete expenses for factory closures, severance and other costs related to the company’s coronavirus response. Excluding those non-recurring expenses, adjusted net income would have been $52.4 million. Gross margin narrowed 130 basis points to 17.8% due to changes in product mix, lower fixed cost absorption and higher overhead cost at factories. SG&A declined slightly in dollars, despite the additional one-off charges, but deleveraged 460 b.p. ... Log in to view full article.

 


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