Todd Klein, a former Adidas and Reebok executive, is the new president of Fila USA, the North American subsidiary of Fila Holdings. He is replacing the retired Jennifer Estabrook, who took the job in 2019 following the sudden death of Jon Epstein. Klein comes to his new role, based in New York, from Adidas where he was VP of advanced concepts. Previously, for more than five years into 2009, he served as global sports marketing director for Reebok.
At Fila USA, Klein will be charged with steering the business through its five-year global strategy, announced in February 2022, which focuses on unified products and marketing worldwide by redefining the brand’s value, building a customer experience-focused business model, and pursuing sustainable growth. Fila USA, which intends to continue with high-profile product collaborations and category ties to tennis and pickleball, needs to turn around its product and financial fortunes. The unit’s FY22 revenues, which will be formally released in mid-March, have been projected to decline by 20 to 25 percent from 2021, when they rose by 11.5 percent to about $497.0 million.
In mid-November 2022, Fila Holdings slashed its annual operating profit guidance by citing one-time restructuring costs and margin pressures related to promotional activities that were negatively impacting Fila USA. During the third quarter, Fila USA suffered a 20.4 percent decline (-31.9 percent in constant currency) in revenues to approximately $99.1 million, which was caused by weaker pricing power caused by excess inventory in the market and more aggressive discounting from rivals. The group’s operating loss was approximately $12.4 million as the subsidiary’s gross margin fell 780 basis points to 22.7 percent on the escalated promotional activity and higher storage costs related to delivery delays.