FILA Holdings Inc.

- Double-digit growth of FILA Holdings’ third-quarter sales and operating profit driven by strong performance of Acushnet, which is a subsidiary of FILA Holdings, as well as FILA’s resilient royalty and joint venture business

FILA Holdings Corp. announced on Nov. 14 that it recorded double-digit growth in both sales and operating profit in the third quarter of this year. FILA Holdings' consolidated sales in the third quarter reached 1.08 trillion won and operating profit stood at 121.80 billion won, up 16.4% and 10.4%, respectively, from the same period last year. The overall earnings improvement was particularly driven by the strong performance of FILA Holdings subsidiary Acushnet, while being supported by the soaring won-dollar exchange rate.

Acushnet recorded sales of 753.84 billion won in Q3 amid continued growth in the North American region. Its sales were up 24.4% from the same period last year as Acushnet again proved itself to be the world’s No. 1 premium golf brand. Its earnings growth was led by the rising popularity of products in its overall categories, including newly launched golf clubs, gear, and golf balls. In addition, pandemic-related supply chain issues began to ease in the third quarter, helping to improve sales.

Meanwhile, FILA recorded sales of 325.71 billion won globally. Its sales growth of 1.4% from the previous year was helped by its resilient royalty and joint venture businesses based on a diversified business portfolio, in addition to the continued expansion of FILA’s business in Malaysia. Earnings were moderately affected by macro factors such as worsening consumer sentiment caused by global inflation, the U.S. economic slowdown, and increased discount sales due to excess inventory in the overall U.S. market.

FILA Holdings recently announced that it would carry out a global reorganization to strengthen its global capabilities, aiming to enhance brand value and consistently showcase the brand's unified products and marketing from its global base. It will build a unified brand image under the lead of a recently established global organizational structure.

To strengthen its global brand image, FILA joined forces with renowned fashion icon Hailey Bieber for a global campaign, while its collaboration collection with Haider Ackerman, one of the most sought-after French designers of the present time, will be unveiled at a fashion show in Manchester, United Kingdom on Nov. 17 (local time). As such, FILA plans to continuously forge fresh partnerships with various fashion industry leaders while strengthening internal stability in all its global organizations.

"Both sales and operating profit grew by double digits thanks to Acushnet's solid growth, strong royalty and joint venture businesses, and benefits from the soaring won-dollar exchange rate, despite concerns over earnings that inevitably arise during the implementation phase of our five-year strategy," FILA Holdings CFO Ho Yeon (Aaron) Lee said. "We will make efforts from various angles to redefine FILA’s brand value with long-term goals."