November 23, 2024

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Fila Holdings' company logo (Fila Holdings)

South Korean sports apparel firm Fila Holdings reported a jump in second-quarter profits, driven by robust performance from its golf equipment subsidiary and strong brand momentum abroad.

According to its recent earnings report Friday, its revenue rose 2.5 percent year-on-year to 1.18 trillion won ($887 million) in the April-June period. Its operating profit surged 52.4 percent to 140.15 billion won.

Its US subsidiary, Acushnet, in particular, reported 937.77 billion won in sales, driving up the company's overall earnings.

Its Titleist Pro V1 golf ball maintained a dominant 72 percent market share on major tours worldwide. The sustained growth in the US golf market also contributed to the robust performance, company officials say.

Despite its core business reporting a slight dip in quarterly revenue to 235.52 billion won, Fila said it remains committed to its long-term strategy. The company is particularly bullish on brand marketing, store renewals and key products to enhance brand value.

Fila recently launched the "Bellissimo" global campaign to showcase the brand’s unique blend of style and performance cultivated through its 113-year history. The brand has already been making waves in the sports world, with its sponsored athletes clinching titles at major events, including a women's singles victory at a prestigious Grand Slam tennis tournament last month. Fila-sponsored athletes also scored multiple medals at the recent Summer Olympics, further cementing the brand's global visibility.

Looking ahead, Fila plans to ramp up its sponsorship initiative across individuals, teams, and events to nurture sports talent and expand its global presence.

"Acushnet's premium offerings and Fila's market traction, especially in China, powered our stellar Q2 growth," said Fila Holdings Chief Financial Officer Lee Ho-yeon. "We're betting big on brand revitalization to spur an earnings comeback."

By Moon Ki-hoon (moonkihoon@heraldcorp.com)