The consolidation since late last year of Acushnet, a company in which it now owns 53 percent of the shares, led Fila Korea to book a huge increase in revenues to 569.2 billion Korean won (€440.2m-$519.0m) in the third quarter from KRW 175.5 billion in the year-ago period. It also helped the company, which mainly licenses the Fila brand outside the domestic market and the U.S., to reach a positive operating margin of 0.6 percent during the period, compared with a negative margin of 2.2 percent in the same quarter a year ago.
The gross margin improved strongly to 57.1 percent of revenues from 47.9 percent in the year-ago period. Net losses were reduced to KRW 1,542,000 (€1,192.7-$1,406.1) from KRW 18,679,000.
Fila USA's revenues declined to $67.2 million from $75.9 million, generating a lower operating margin of 3.6 percent against 5.4 percent, as the brand continued to increase its positioning in the upper distribution channel.
Royalty income from the company's 35 licensees rose slightly to $9,291,000 from $9,219,000 in the quarter. The inflow of royalties from Europe, the Midlle East and Africa (EMEA) continued to improve, reaching 47 percent of the royalty income as compared to 38 percent and 43 percent in the third quarters of 2015 and 2016.