"US Apparel Market Slump" FILA Holdings, 2Q Operating Profit Down 40%
Sales Revenue of 1.147 Trillion Won... 2.6% Increase
FILA Holdings announced on the 17th that its operating profit for the second quarter of this year was 91.9 billion KRW, a 39.7% decrease compared to the same period last year. During the same period, sales increased by 2.6% to 1.147 trillion KRW.
By business segment, the FILA division recorded sales of 241 billion KRW, a double-digit decrease compared to the previous year. This is attributed to a slowdown in U.S. consumer spending, which led to an overall decline in apparel sales, as well as a decrease in new orders due to high inventory levels last year. Under the five-year strategy “WINNING TOGETHER,” FILA Group is continuing efforts to adjust sales channels and improve its business structure in regions where it directly operates. The company plans to focus on rebuilding efforts to reestablish itself as a premium lifestyle sports brand.
On the other hand, the golf-related subsidiary Acushnet recorded sales of 906 billion KRW, a 9.3% increase compared to the same period last year, driven by double-digit growth in golf ball and golf club sales. The number of rounds played in the U.S. during the first half of the year increased by 5.5% compared to the same period last year, demonstrating strong demand and stability in the golf industry. Based on this, Acushnet’s North American sales, where it holds a leading position, grew by 14.2%, delivering strong results. Positive factors contributing to the performance increase included solid brand demand for Titleist, reduced logistics costs due to supply chain stabilization, major tournament wins by key brand-sponsored players, and favorable exchange rate effects.
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Lee Ho-yeon, CFO (Chief Financial Officer) of FILA Holdings, stated, “Despite the challenging domestic and international fashion market environment, we were able to reduce the decline thanks to the strong brand power of our golf-related subsidiaries and FILA Group’s diversified brand business portfolio. FILA Group prioritizes enhancing brand value and will continue to make multifaceted efforts to achieve this.”
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