Fila lowers outlook despite Q3 revenue rise
Fila has reported a 16.4% increase in revenue to £685 million (KRW 1,079 billion) for the third quarter ending 30 September 2022.
This growth was benefited by the company's "well diversified" business portfolio. Along with resilient royalty income growth, slightly offset by promotional sales activities under challenging market circumstances in the US.
For Q3, Fila shared the following results:
- Fila brand sales up 1.4% to £206 million (KRW 325 billion).
- Gross profit up 14.7% to £329 million (KRW 519 billion).
- Gross profit margin down 0.8% to 48.1%.
- Net income up 23.6% to £59 million (KRW 93.8 billion).
Global royalty in the EMEA region increased 20.7% to £6.6 million (KRW 10.5 billion), driven by its licensee's stable supply chain management and strong US currency effect.
Looking ahead, the company now expects sales to rise between 5% and 10%, compared to a -2% and 2% previously.
However, consolidated operating profit is expected to be between -5% and -10%, compared to -2% and 2% previously. This reflects one-off restructuring costs and margin pressure due to promotional activities caused by challenging market conditions in the US.
