Acushnet's North American Business Booms
Fila Holdings announced on the 16th that its consolidated sales for the first quarter of this year reached 1.1826 trillion KRW, a 6.7% increase compared to the same period last year. Operating profit for the same period was 163.3 billion KRW, up 1.8%, while the operating profit margin decreased by 0.7 percentage points to 13.8%.
By business segment, golf-related subsidiary Acushnet recorded sales of 939.9 billion KRW, driven by strong performance mainly in the North American market. This represents a 7.4% increase compared to the same period last year. Acushnet’s operating profit for the first quarter was 157.3 billion KRW, up 0.6% year-on-year. Fila Holdings explained that Acushnet achieved performance growth as all models of golf balls, including newly launched golf clubs, gained popularity.
The Fila segment recorded sales of 242.7 billion KRW and operating profit of 6 billion KRW in the first quarter of this year. These figures represent increases of 4.1% and 45.8%, respectively, compared to the same period last year. FilaUSA, which operates Fila’s business in the United States, showed sales improvement due to a reduction in discount sales, and domestic subsidiary Fila Korea reported that new products launched for the spring-summer (SS) season this year received positive responses from consumers, the company explained. The Fila Group is focusing on strengthening product competitiveness and expanding marketing investments to enhance brand value.
In the first quarter, Fila focused its marketing activities centered on tennis, emphasizing its identity as a "premium lifestyle sports brand." Fila Korea hosted the tennis festival "2024 WHITE OPEN SEOUL" at Seoul Olympic Park for the second consecutive year. In March, it participated as the longest-standing official apparel and shoe sponsor at the tennis tournament "2024 BNP Paribas Open" held in Indian Wells, California, USA.
Lee Ho-yeon, Chief Financial Officer (CFO) of Fila Holdings, stated, "Despite the deepening domestic and international consumption downturn due to high inflation and high interest rates, the sustained growth of the golf-related subsidiary, cost reduction in the Fila segment, and favorable exchange rate effects contributed to profitability improvement. We will spare no quality investment and support not only to enhance the brand value of the Fila segment but also to improve performance."
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