Fila Holdings reported that consolidated revenue grew 11.3 percent to ₩4.22 trillion for the full year 2022, compared to ₩3.79 trillion in the prior year. Operating profit declined 11.7 percent to ₩435.07 billion in 2022. The Korea-based company said that despite economic uncertainties at home and abroad, Fila Holdings was able to break ₩4 trillion in revenue due to the robust performance of its subsidiary Acushnet and the impact of a strong dollar.
Acushnet’s revenue of ₩2.93 trillion and operating profit of ₩349.76 billion both saw double-digit growth from the previous year. Fila’s revenue of ₩1.29 trillion and operating profit of ₩85.31 billion represented single-digit and double-digit year-on-year decreases, respectively.
Acushnet’s continuous growth was reportedly underpinned by its revenue increase in North America. It was further boosted by lower transportation costs due to eased supply chain disruptions, as well as strong sales of newly launched products, notably Titleist golf clubs and gear.
Meanwhile, the company said Fila incurred greater costs as anticipated amid a sales channel adjustment and reorganization in line with the brand’s extensive renovation under its five-year global strategy. Its revenue was also affected by its continued inventory burden and intensifying discount competition in the U.S. market, along with macroeconomic headwinds such as the global economic slowdown, high-interest rates, and inflation. However, there were encouraging signs as a diversified brand portfolio helped the recovery of royalty sales in Europe and South America, while the company’s joint venture business in China and Malaysian operations also demonstrated their strength.
Going forward, Fila Holdings plans to expand contact points with consumers through tennis marketing, including new collections and events. This year marks 50 years since the official launch of Fila tennis wear in 1973, which the company recently celebrated by holding a commemorative event at the BNP Paribas Open in Indian Wells, CA.
Moreover, Fila Holdings said it had hired accomplished sportswear visionary Todd Klein as president of Fila USA this January following the appointment of a new president of Fila Korea last year, completing preparations to accelerate its overall business improvement.
Fila Korea recently relaunched its online platform while planning to renovate offline retail stores to help drive Fila’s direction as a premium lifestyle sports brand as well as focusing on strengthening product competitiveness and operational efficiency.
“Across our group, Fila Holdings achieved steady growth due to the robust business performance of Acushnet and Fila licensees, the strength of our royalty and joint venture businesses, and the strong dollar effect despite the ongoing global economic downturn,” said Fila Holdings CFO Ho Yeon (Aaron) Lee. He added, “We will do our best to successfully execute our five-year global strategy based on the company’s clear direction.”
Photo courtesy Fila
