Fila USA's revenues grew 11.5 percent in the second quarter, to $71.3 million from $63.9 million a year ago, according to the quarterly results of its parent, Fila Korea Ltd. Net earnings improved to $2.38 million from $1.99 million.
Gross margins declined slightly in the U.S. region, to 28.1 percent from 28.7 percent but operating income as improved overall to 6.0 percent of sales from 5.9 percent a year ago.
In its statement, Fila Korea Ltd. noted about the Fila USA subsidiary:
- Fila USA has shown improvement in both sales and profit since its return to profitability in 2010.
- Despite the competitive market conditions in the US, Fila USA continued to grow both the revenue and operating
- profit on a dollar basis.
- Fila USA is focused on building a strong platform upon which to elevate the brand value
Companywide, Fila Korea Ltd. reported sales grew 2.7 percent in the quarter to KRW200.7 trillion ($169.7 mm) from KRW195.4 trillion a year ago. The company showed a net loss of KRW31.8 trillion ($26.9 mm) against a profit of KRW29.5 trillion a year ago. Gross margins eroded to 48.8 percent from 51.4 percent while operating income eroded to 12.6 percent of sales from 14.6 percent.
At its Fila Korea subsidiary, revenues slid 7.6 percent to KRW100.5 trillion ($84.9 mm) from KRW108.6 trillion in the same period a year ago. Net earnings rose 27.2 percent to KRW3.8 trillion ($3.2 mm) from KRW2.95 trillion. Gross margins declined to 58.1 percent from 59.8 and overall operating earnings slid to 4.9 percent of sales from 7.9 percent.
Global royalty sales for Fila Korea Ltd. reached KRW13.5 trillion ($11.4 mm), down from KRW14.9 trillion in the same period a year ago.
Fila Korea Ltd. also owns a stake in Acushnet Company, the golf manufacturer, and reports its results. In the quarter, sales of Acushnet rose 2.0 percent to $446.5 million. Acushnet's earnings improved 10.9 percent to 36.5 million from 32.9 million. Gross margins improved to 53.1 percent from 50.2 percent while operating income increased to 14.7 percent of sales from 13.0 percent.