Profit attributable to shareholders slipped 19% to $64,040,000 from $78,633,000 for the first half, impacted by increased material costs, product mix adjustments, and ramping up new facilities, as revenues ticked up 1% to $786,672,000 from $775,074,000. Stella’s largest Chinese sneaker customer shifted its product mix toward lower-ASP styles targeted at the domestic market, pushing gross margin down by 230 basis points to 20.3%. Operating expenses were mostly in line, with selling and distribution expenses down 3% and administrative expenses growing 1%.

Athletic footwear sales improved 3%, accounting for nearly half of ... Log in to view full article.