Golf Boom Effect 'Ttokttok'... Strong Earnings Expected for Fila Holdings

[Asia Economy Reporter Ji Yeon-jin] As the demand for golf surges due to the prolonged COVID-19 pandemic, FILA Holdings is expected to achieve significant performance improvements in the second quarter of this year.

According to the financial investment industry on the 17th, FILA Holdings' total sales for the second quarter of this year are expected to exceed 920 billion KRW, representing approximately 48% growth compared to the same period last year. Operating profit during this period is also projected to grow by around 200%. Shinhan Financial Investment forecasts FILA Holdings' second-quarter operating profit to increase by 181% year-on-year to 141.5 billion KRW, while DB Financial Investment expects a 222.8% increase to 162.3 billion KRW. The golf brand Acushnet Holdings is anticipated to drive performance improvements as the seasonal peak period coincides with the COVID-19 base effect.

Park Hyun-jin, a researcher at DB Financial Investment, said, "Golf-related sports goods and fashion companies are showing strong performance growth due to increased golf demand not only in North America but also in Asia," adding, "Especially in the second quarter of this year, the base burden from last year's performance is lower than in the previous quarter, and the sales growth of multiple brands operated by Acushnet Holdings is generally steady, with increased sales contributions from new products being positive."

The performance of the FILA brand is also understood to be maintaining an improving trend. Until May, overall demand for children's clothing showed high growth, and FILA Kiz consistently ranked 3rd to 4th within the children's clothing zoning in department stores, according to analysis. Since 2019, FILA Kiz's annual sales have exceeded 30 billion KRW solely from the kids' brand, suggesting that FILA Kiz may be generating an earnings leverage effect. The increase in design fees in China is expected to have maintained the previous quarter's trend, and global royalty fee income is also anticipated not to have deviated significantly from the growth trend of the previous quarter.

Researcher Park said, "FILA's U.S. subsidiary appears to be increasing the supply of its main footwear products after retailers have sufficiently depleted their inventory," adding, "In the mid to long term, the average selling price (ASP) is expected to rise, which could enhance FILA's brand capabilities. Especially with the addition of a brand director, it seems likely that a specific direction for the FILA brand will be presented soon, making next year even more promising."

This content was produced with the assistance of AI translation services.