Fila Holdings reported sales at its Fila USA segment were KRW 135.3 billion ($104 mm) in the first quarter, down 8.1 percent on a reported basis and 15.1 percent on a currency-neutral basis.
Operating profit in the Fila USA segment was a loss of KRW 2.8 billion against earnings of KRW 3.95 billion.
Fila said the sale decline reflects “the impact of the sales channel adjustment for the brand equity improvement aligned with 5-year plan.” The loss reflected the decrease in sales.
Companywide, Fila Holdings, which owns the Fila brand and Acushnet, had sales of KRW 1.07 trillion, up 8.6 percent on a reported basis and 1.8 percent on a currency-neutral basis. Operating profit was KRW 168.8 million, down 8.0 percent on a reported basis and off 14.3 percent on a currency-neutral basis.
Net income was KRW 123.1 billion, down 8.3 on a reported basis and 15.4 percent on a currency-neutral basis.
At the Fila brand, global sales were KRW 343.3 billion, up 0.5 percent on a reported basis and down 3.1 percent on a currency-neutral basis. Operating profits for the Fila brand were KRW 46.15 billion, down 12.1 perfect on a reported basis and 14.8 percent on a currency-neutral basis.
At Acushnet, sales were KRW 730.3 billion, up 12.9 percent on a reported basis and ahead 4.3 percent on a currency-neutral basis. Operating profit was KRW 122.6 million, down 6.4 percent on a reported basis and 12.2 percent on a currency-neutral basis.
The 10Q report also noted that royalty in North America was down 22.6 percent to KRW 1.35 billion due to the expiration of its royalty partnership with Kohl’s related to the Fila Sport line.
Photo courtesy Fila
