STK - Earnings miss due to weaker-than-expected sales volume - Earnings Flash
  • 2023-01-18T00:00:00
  • Company Research
  • STK released weak Q4 2022 results as sales volume fell 24% QoQ and NPAT-MI slumped 14% QoQ. In 2022, sales volume and core NPAT dipped 5% YoY and 3% YoY, respectively. Full-year 2022 sales volume and NPAT achieved 97% and 96% of our respective 2022F.
  • The destocking of built-up inventory of customers across the value chain continued to exacerbate the impact of weak textile demand and apparel sales. This bullwhip effect is especially prominent in the case of STK — an upstream material producer. 
  • Virgin yarn and recycled yarn sales volume slumped 22% QoQ and 25% QoQ, respectively.

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