Fila Holdings generated group revenues of 1,019,354 million Korean won (€739.4m-$866.2m) in the second quarter ended June 30, up by 63.1 percent on the year earlier, as the Korean-based company’s results continued to benefit from the contribution of its 51-percent owned Acushnet subsidiary and licensing royalties showed a clearly improving trend. Excluding Acushnet, which has seen revenues soar amid a golfing boom, the Fila brand’s revenues increased by 23.9 percent to KRW 318,843 million (€231.m-$270.9m).

Net income jumped in the quarter by 198.2 percent to KRW 135,749 million (€98.5m-$115.4m), although the gross margin narrowed by 1.0 percentage point to 51.3 percent. The group’s operating margin increased to 17.0 percent from just 8.0 percent in the second quarter of 2020. Excluding Acushnet, the operating margin expanded to 16.3 percent from 14.7 percent.

Fila Holdings, known as Fila Korea until it was renamed last year, has owned the Italian heritage sports brand since 2007 and licenses it out in parts of Asia, parts of the Americas and the EMEA regions. During the quarter, the number of licensees remained steady at 48, but the company’s licensing revenues jumped by 55.0 percent to $15.4 million.

Fila Holdings, which typically charges a licensing fee of between 6 and 7 percent on the licensees’ wholesale revenues, saw higher licensing royalties in all geographical regions. In EMEA, where the group has 11 regional licenses, revenues from royalties increased by 29.3 percent to $6.8 million in the second quarter but remained below the level of $9.4 million reached in the second quarter of 2019. Licensing revenues surged by 183.9 percent in North America and by 302.4 percent in South America while they grew by 41.4 percent in other markets. Fila also reported a 36.8 percent increase to $13.0 million in the 3 percent design fees attached to its joint venture with Anta Sports Products for Fila in China.

Fila USA, the company’s North American subsidiary, saw revenues increase by 101.1 percent to $113.5 million. The subsidiary generated an operating profit of $1.3 million against a loss of $5.0 million the year earlier and a net profit of $0.5 million after $4.4 million in red ink the year before.

Sales in South Korea decreased by 3.7 percent from the year earlier to KRW 136,861 million (€99.3m-$116.3m). The segment’s operating profit slipped by 1.1 percent to KRW 27,719 million (€20.1m-$23.6m), but its net profit grew by 3.3 percent to KRW 20,947 million (€15.2m-$17.8m).