Fila Korea reported consolidated net income of 16.0 billion Korean won (€12.9m-$14.5m) for the second quarter, compared with a loss of KRW 31.7 billion in the year-ago period. Operating earnings declined by 1.6 percent to KRW 24.8 million (€19,994-$22,524), but total revenues rose by 4.2 percent to KRW 209.3 billion (€168.7m-$190.1m), performing much better than analysts had expected.
The macroeconomic slowdown in Korea caused the company to post a sales decline of 18.8 percent to KRW 87.2 billion (€70.3m-$79.2m) in its home country, resulting in 6 percent lower operating earnings of KRW 3.55 billion (€2.86m-$3.22m). Conversely, revenues from overseas operations jumped by 30.7 percent to KRW 122.0 billion (€98.3m-$110.8m), but the global royalty income, which includes Fila's licenses in Europe, fell by 8 percent to KRW 8.27 billion (€6.66m-$7.51m).
The bright spot was Fila's U.S. subsidiary, which delivered increases of 27 percent in sales and 65 percent in profits for the quarter, in spite of competitive market conditions. It made a net profit of $3.9 million on sales of $90.4 million.
