"Quarterly Record Performance" FILA Holdings, Q2 Sales Reach 1.1719 Trillion KRW... 15% YoY Increase

[Asia Economy Reporter Eunmo Koo] Fila Holdings recorded its highest quarterly performance ever in the second quarter, following the first quarter of this year.

Fila Holdings announced on the 17th through a public disclosure that its consolidated sales for the second quarter of this year reached 1.1719 trillion KRW, a 15% increase compared to the same period last year. Operating profit for the same period was 152.4 billion KRW, down 12.3% year-on-year due to unstable domestic and international market conditions such as supply chain issues and weakened consumer sentiment caused by inflation.

Looking at each business segment, the golf-related subsidiary Acushnet recorded another earnings surprise following the first quarter. Sales for the second quarter rose 18.3% year-on-year to 829 billion KRW. Despite worsening international economic conditions such as the Ukraine war and supply chain disruptions, solid customer base and steady golf demand supported continued performance growth. The U.S. region, which showed the largest sales growth, led overall results with high sales of Titleist golf clubs and newly launched FootJoy golf shoes.

The Fila segment posted sales of 342.9 billion KRW and operating profit of 39.9 billion KRW. As Fila’s mid- to long-term strategy entered the full execution phase, an adjustment in the growth rate of direct business sales was inevitable. External factors such as the Shanghai lockdown in China, supply chain issues, and weakened consumer sentiment due to inflation also impacted performance. However, sales from diversified brand business portfolios such as Fila royalties and design service fees increased, offsetting the sales decline in Korea and the U.S. caused by the adjustment in sales growth during the brand strategy execution process. Fila plans to continue comprehensive structural improvements to enhance brand value in the long term.

Among the Fila segment, Fila Korea, which operates domestic business, posted second-quarter sales of 126.2 billion KRW and operating profit of 25.7 billion KRW, down 7.8% and 7.4% respectively compared to the same period last year. Starting in the second half of this year, Fila Korea will focus on the successful domestic execution of the group’s five-year strategy. Notably, it plans to expand the tennis business, a core category of Fila and a rising sports trend. With full company support, it will increase tennis-related marketing and consumer events and expand the product lineup.