FILA Holdings reaffirmed its commitment to responsible management and shareholder returns by publicly disclosing on March 20 that it will retire its existing treasury stocks and buy back up to 50 billion won worth of shares this year.
The treasury stock retirement and share buyback plan aligns with the company's aim to enhance shareholder value under its ongoing five-year strategy. FILA Holdings disclosed that it would retire 656,383 treasury shares worth 26.12 billion won, which is the equivalent of 1.1% of its total issued shares. The scheduled treasury stock retirement date is March 28.
Moreover, FILA Holdings announced that it plans to buy back up to 50 billion won worth of shares this year. This includes a first trust agreement signed by the company to buy back up to 10 billion won worth of shares from March 21 to September 20.
Once its financial statements are approved during this month’s regular shareholders’ meeting, FILA Holdings will pay out the annual dividend for 2023. As the company continues to prioritize shareholder-friendly management policies, it has additionally paid out a special dividend for two consecutive years since 2022.
FILA Holdings also announced on March 20 its financial results for the full year of 2023. The company's consolidated revenue reached 4.01 trillion won, down 5.1% from the previous year, while its operating profit of 303.49 billion won marked a 30.2% year-on-year decline.
Golf-related subsidiary Acushnet continued to perform strongly, particularly in the North American region, enjoying robust demand for Titleist golf balls as well as golf clubs. At the same time, FILA conducted significant brand renovation efforts in its direct business regions over the last year.
FILA Korea contributed to enhancing brand value through measures such as sales channel adjustments along with store renovations and renewals, while FILA USA achieved a performance milestone by hitting its inventory management target. Although these initiatives weighed on FILA’s short-term performance, they have laid the groundwork for business strengthening and a new leap for the brand. Other positive factors included the growth of FILA's joint venture in China and a diversified brand portfolio strengthening its position in the Malaysian market.
"The decision to retire existing treasury stocks and buy back shares was driven by the primary goal of enhancing shareholder value and the management's confidence in the company's growth going forward," said FILA Holdings CFO Ho Yeon (Aaron) Lee. He added, "The reinforcement of our comprehensive shareholder return policy this year seeks to fulfill our role as a company that prioritizes shareholders."