Thanks to stronger demand for golf products by Acushnet, the Fila Group’s revenues rose by 0.9 percent to 796,462 million Korean won (€592.5m-$706.3m) in the fourth quarter. Its net income tumbled by 65.8 percent to KRW 17,604 million (€13.1m-$15.6m), and its gross margin contracted by 5.3 percentage points to 60.6 percent.

Excluding revenues from the golf company, the Korean-based group’s revenues went down by 9 percent from the year-ago quarter to KRW 324,914 million (€241.7-$288.1m).

Fila Korea has been the owner of the Italian heritage sports brand by the same name since 2007, and it has been licensing it out in several regions. During the quarter, the number of licensees fell by one to 48, and licensing revenues declined by 14.2 percent to $16.3 million, with drops in all the regions due to the effects of the coronavirus pandemic. Typically, Fila Korea charges a licensing fee of between 6 and 7 percent on the licensees’ wholesale revenues.

In EMEA, where the group has one master licensee and 11 regional licensees, revenues from royalties plunged by 16.2 percent to $7.4 million.

The revenues of the company’s North American subsidiary, Fila USA, fell by 25.2 percent to $135.2 million, leading to a net loss of $1.8 million, up from a loss of $0.9 million for the year-ago quarter, due to a slowdown in retail caused by Covid-19.

In South Korea, sales went down by 16.2 percent to KRW 136,176 million (€101.3m- $120.8m), while net earnings tumbled by 45.7 percent to KRW 11,331 million (€8.4m-$10.1m), due to lower wholesale revenues and a smaller store fleet that has been reduced to 509 units, compared with 535 last year.

On the other hand, the group managed to book a 32.0 percent increase to $15.1 million in the 3 percent design fees attached to its joint venture with Anta Sports Products in China.

For the full financial year, Fila Holdings’ net income fell by 41.5 percent to KRW 197,739 million (€147.1m-$175.4m), on 9.3 percent lower sales of KRW 3,128.806 million (€2,327.9m-$2,651.2m). The gross margin dipped by 2.7 percentage points to 10.9 percent. Excluding Acushnet, sales were down by 18 percent for the year, but its revenues from the Chinese joint venture with Anta increased by 20 percent.