Fila Holdings Reports ‘Robust' 2024 Earnings After Downsizing US Operations
Fila Holdings is wrapping up fiscal 2024 on a high note.
According to the Seoul, Korea-based company, it reported 'robust' financial results for 2024, driven by the continued strength of its U.S. golf subsidiary Acushnet Holdings Corp., favorable currency exchange rates and improved cost management.
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For the year, the company saw consolidated revenue reach 4.27 trillion won (approximately $2.9 billion based on current exchange rate), a 6.5 percent year-on-year increase from 2023. Fila also saw operating profit rise 18.9 percent from the previous year to 360.8 billion won ($250 million).
As stated, Fila noted that its strong financial performance was primarily fueled by Acushnet's revenue growth of 7.8 percent year-over-year, reaching 3.35 trillion won, supported by sustained demand in the U.S. golf market and the continued success of Titleist golf balls and clubs.
The Fila division also posted a 2.2 percent revenue increase, totaling 917.3 billion won, benefiting from a diversified business model, including joint ventures and licensing agreements, the company said.
'Strong cash flows from our core businesses, including Acushnet and our strategic joint ventures, allow us to execute disciplined capital allocation strategies that drive sustainable growth and profitability,' Ho Yeon (Aaron) Lee, chief financial officer of Fila Holdings Corp., said in a statement. 'As Fila Holdings continues to strengthen its global presence, the company remains focused on delivering enhanced value to its shareholders through disciplined financial management and strategic business expansion.'
This business update comes just months after the Fila brand said it was downsizing its operations in the U.S. as it looks to cut costs.
The global athletic brand said in a November filing to a South Korean financial regulator that it was undergoing a 'reorganization and downsizing part of Fila's North American operations to strengthen financial structure.' At the time of this news, the brand had scaled back its wholesale and retail business in footwear and apparel in North America.
According to the filing, Fila USA's business has been impacted by headwinds in North America such as a difficult business environment and heightened competition. Fila said that it will seek to reengage in the region after it conducts a deep analysis of the market and stabilizes business.
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