Korea-based Misto Holdings, formerly Fila Holdings Corp., reported sales were up 4.6 percent year-over-year in the first quarter as a strong performance of Acushnet, the parent of Titleist and FootJoy, offset ongoing softness at the Fila brand.

The consolidated figures include the Acushnet business based on Misto’s 51 percent stake in the company. Acushnet trades on the New York Stock Exchange. SGB Executive reported first-quarter results on November 7, 2024.

Misto, which is listed and trades on the Seoul stock exchange, reports in the Korean won (₩) currency.

Misto’s consolidated revenue reached ₩1.24 trillion ($893 mm) in Q1, up from ₩1.18 trillion a year ago.

Operating profit was ₩162.7 billion, down 0.4 percent from ₩163.3 million a year ago. Gross margin improved to 52.2 percent from 47.9 percent. However, SG&A expense increased 6.9 percent to ₩483.7 billion, or 39.1 percent of sales from 38.3 percent.

Net income advanced 22.9 percent to ₩151.4 billion due to gains in other income.

By business segment, the Acushnet division recorded revenue of ₩1.02 trillion, up 8.7 percent compared to the same period last year, supported by strong sales of new Pro V1/Pro V1x Titleist golf balls and continued momentum in golf clubs. Beyond Titleist and FootJoy, Acushnet brands include Vokey Design, Scotty Cameron, Pinnacle, KJUS, and Links & Kings.

Misto noted that Acushnet’s gains came “despite rising raw material prices, weakening consumer sentiment and policy uncertainties such as U.S. tariffs. Golf balls, used by 75 percent of professional tours worldwide and 68 percent of tour winners, along with clubs and gear, continued to show year-over-year growth, serving as a key driver of performance.”

The Misto division, which includes the Fila brand, Alife and Holy No.7, posted revenue of ₩215.7 billion, down 11.2 percent from ₩242.7 billion a year ago. Sales for the Fila brand globally reached ₩183.5 billion, down 22.4 percent from ₩236.61 billion a year ago. Sales of other brands were ₩32.4 billion, more than double ₩14.7 billion a year ago.

Misto said in its statement that the Misto division’s performance was “supported by strong domestic footwear sales and diversification of online DTC channels, even amid economic downturn.”

Misto added, “The company is making multifaceted efforts to enhance brand value over the long term, including strengthening product competitiveness and increasing marketing investment. Fila’s footwear franchise, particularly the Echappe series and the traction from the 2030 consumers, increased significantly and is receiving a positive response in the market. Misto Group’s diversified brand business portfolio, including royalties and joint ventures, also continues to show steady performance.”

Misto noted that it announced a new shareholder buyback policy earlier this year, targeting up to ₩ 500 billion in shareholder returns from 2025 to 2027. Following the announcement of a ₩70 billion share buyback in March, the Board of Misto approved an additional ₩30 billion share buyback this month. As a result, a total of ₩100 billion will be allocated to shareholder returns in the first half of 2025 alone.

Ho Yeon (Aaron) Lee, CFO of Misto Holdings, said, “Despite global policy uncertainties such as U.S. tariffs and weak consumer sentiment at home and abroad, sustained growth within our diversified business portfolio supported our overall business performance growth. Misto Group will continue to focus on performance improvement and brand value enhancement.”

Photo courtesy Fila