Fila Holdings, Last Year's Sales Reach 4.2218 Trillion KRW... Joining the '4 Trillion Club'

Fila Holdings announced on the 22nd that its sales surpassed 4 trillion KRW last year, entering the so-called '4 trillion club' in the fashion industry. This growth was driven by the strong performance of its golf-related subsidiaries and benefits from the rising exchange rate.

Fila Holdings disclosed yesterday through a public announcement that its consolidated sales last year reached 4.2218 trillion KRW, an 11.3% increase compared to the same period the previous year. Operating profit was 435.1 billion KRW, down 11.7% year-on-year. By business segment, Acushnet continued to grow mainly in the North American market, with sales and operating profit reaching 2.9332 trillion KRW and 349.8 billion KRW respectively, both showing double-digit growth. The Fila segment recorded sales of 1.2886 trillion KRW and operating profit of 85.3 billion KRW.

The golf-related subsidiary Acushnet showed the largest sales increase in the North American region. As supply chain issues entered a mitigation phase, transportation cost burdens decreased, and newly launched products generally performed well in sales. In particular, Titleist clubs and gear gained high popularity, driving performance growth. In the Fila segment, costs were incurred due to the execution of a five-year strategy, including sales channel adjustments, as the regions directly operated by the business underwent a major brand renovation process.

Among the Fila segment, Fila Korea, which operates domestic business, posted annual consolidated sales of 496.3 billion KRW and operating profit of 86.3 billion KRW, recording a single-digit decrease in sales and a double-digit decrease in operating profit compared to the previous year. Fila Korea is actively engaged in comprehensive structural improvements to recover performance. Recently, as part of its DTC strategy and aligned with its transformation into a premium lifestyle sports brand, it renewed and reopened its official online store. It also plans to introduce stores applying a new interior manual based on the new brand identity. Through sales channel adjustments, it is focusing on reducing the proportion of channels that damage brand value and withdrawing some inefficient stores to improve operating efficiency per store.

On a global scale, Fila plans to strengthen its core tennis marketing and expand collaborations with various partners leading the fashion industry. Following the appointment of a new CEO for Fila Korea last year, Fila Holdings recruited Todd Klein, an expert in the sports fashion industry, as CEO of Fila U.S.A. Inc. in January.

Lee Ho-yeon, CFO (Chief Financial Officer) of Fila Holdings, said, “Despite the ongoing global economic downturn, we were able to join the 4 trillion club thanks to Acushnet’s steady growth, strong performance in royalty and joint venture businesses, and benefits from the rising exchange rate. We will do our best to achieve our global mid- to long-term goals based on the company’s clear direction.”