Fila endeavours to be global lifestyle brand

Italian sporting company Fila wants to grow the brand into a global lifestyle business worth $1 bn. Yoon-Soo "Gene" Yoon, chairman of Fila and holding company Global Leading Brands House, stated in the next three years he could more than double Fila's $400 million to $500 million volume. The brand, who's biggest claim to fame is its Bjorn Borg history, would firstly improve product and segment its distribution channel to take the brand both high end and mass, and, third, focus on U.S. wholesale distribution.

During a news conference in Fila's Madison Avenue store Tuesday night, Yoon announced a new licensing model, through which Fila will license all production except in the U.S. This model takes its inspiration from Yoon's own experience with the company, which began in 1984 when he became its first footwear sourcing agent in South Korea.

Within four years of buying Fila, Sport Brands International Ltd., a company within private equity firm Cerberus Capital Management, sold Fila Luxembourg, which holds the rights to the worldwide use of the Fila brands and trademarks, to Fila Korea. Fila Korea acquired the firm by buying all capital stock of Fila Luxembourg for an estimated $350 million. "Some past management groups thought of Fila as an Italian luxury brand," he said. "They were wrong. It's an Italian authentic sportswear brand."

www.fila.com
12 April 2007

Paris Hilton faces off for Fila

Paris Hilton has been chosen to become the face of Fila. The American heiress and sometime actress and singer has inked a deal with Fila Korea to appear in a number of commercials and print ads for the Italian sporting goods firm. Fila said it chose Paris to front its brand because her public image as sexy, fashion conscious and highly sociable corresponds that of Fila. The brand believes she will be an important trendsetter for the brand in 2007. In addition to the promotional activities planned from March onward, some of which will also take place in Los Angeles, the sportswear company will also launch a Fila collection by Paris Hilton. According to a spokesman for the firm, details of the collection are not yet known. Stay tuned!

www.fila.com
7 February 2007

Fila Celebrates Art of Sport

Italian sportswear brand Fila pulled out all stops yesterday evening and hosted a glamorous 'art of sport' party at the newly opened Soho Hotel in London. Editors, stylists, celebs and fashionistas came to see a short film Fila commissioned to up-and-coming Brit artist Mahalia Belo.

Belo, whose earlier film 'As I Count Ten' was shortlisted for the Becks Futures Prize for film and video, uses still photographs to create environments suspended in time. Moving urban landscape images offer an edgy, yet artistic view of a brand that is authentic, bold, and innovative in its commitment to sport.

The film launch coincides with Fila's new vintage-insired fashion range, which is available at select stores this month. The collection marks a return for a brand whose very roots define style, passion and creativity. Best described as a mix of Italian design fused with archive classics, the new collection consists of fluid, wearable pieces such as suede-panelled cotton polos and sweaters, bright coloured zip-ups a la Bjorn Borg and a beautiful range of outerwear.

Guests at the party danced to the best 80s soundtrack and were able to enter a draw to win an original Bjorn Borg jacket, worth £400.

www.fila.com
16 March 2005

Fila: Remember The Time…

Few global sportswear brands can claim the rich Italian heritage that is part of Fila. With its roots dating back to 1911 as a textile manufacturer in Biella, Italy, Fila entered the world of sport in 1973. Today, the Italian design-led company is legendary in its own right and continues to inspire athletes the world over.

From Bjorn Borg and Boris Becker - the sporting icons of Fila's past - to today's chosen heroes, Fila is edging its way to remain seen as an elite Italian sportswear company who is rich in design tradition but also modern in its execution.

It was Fila who brought about the demise of the white-only-tradition on the tennis courts, and introducted the first-ever range of colour-blocked tennis apparel.

This season, Fila is back on track with a much sought after sportwear collection that is making its way into the luxury sports sector. Think urban and elegant, stylish and contemporary. Soon to be seen at a shop near you.

www.fila.com
23 August 2004

Fila agrees to sell operating businesses

Fila Holding S.p.A. has agreed today to sell 100% of its direct subsidiaries, Fila Nederland BV, Fila Sport S.p.A., Ciesse Piumini SRL and Fila USA Inc., to Sport Brands International LLC, an affiliate of Cerberus, a U.S.-based private investment fund manager. These subsidiaries constitute the present operating business of the Fila group.

The purchase price will be USD 351 million in cash payable at closing plus the assumption by Sport Brands International of all financial debt incurred by the Fila group since January 1, 2003 and of all of the Fila group's trade debt. As of December 31, 2002, consolidated financial debt of the Fila group was EUR 295 million. Fila Holding expects to close the sale by the end of next June. Closing of the sale is subject to certain conditions including antitrust approvals.

March 11, 2003
www.fila.com

Fila back in black

Italian sportswear maker Fila Holding S.p.A. reported on Monday the company is back to operating profitability in 2002: operating profit for the fourth quarter was EUR 4.7 million, compared to an operating loss of EUR 25.5 million in the fourth quarter of 2001. For the full year operating profit was EUR 20.0 million compared to an operating loss of EUR 49.9 million last year.

Net direct sales in the fourth quarter of 2002 totalled EUR 171.7 million, down 20% compared to EUR 215.6 million in the corresponding period of 2001. Apparel sales were EUR 113.8 million and footwear sales were EUR 57.9 million, down by 12% and 33% respectively compared with the fourth quarter of 2001.

Gross profit for the quarter improved to 42.1% of revenues compared to 31.6% in 2001. Gross profit margin for the full year was 38.5% of revenues (35.3% in 2001). Net loss decreased by 68% to EUR 16.6 million for the quarter and 42% decrease to EUR 80.9 million for the full year.

The results were impacted by factors such as the discontinuation of the Australian and Brazilian subsidiaries in favor of a licensing strategy in those countries, Fila stated. The strong appreciation of the Euro against the US Dollar during the second half of the year, the restructuring process in the UK with considerable write-down of assets and the impact of exchange rate changes for Argentina and Brazil. Without these factors, the result before taxes for the full year would have been close to break even.

Sales in the U.S. were EUR 61.4 million in the quarter, decreasing by 17% from EUR 74.4 million in the fourth quarter of 2001, despite an increase in Enyce Brand sales (up 3%); in Europe sales decreased by 19% to EUR 55.4 million.

Marco Isaia, Chief Executive Officer of Fila, said: "Our operating result is back to profitability. This was achieved through both a significant reduction in fixed costs and an improvement in gross profit, testifying to our efforts to improve every item in our statement of operations.(…) The road to complete recovery is not easy, and it will be very challenging to achieve good financial results in 2003. Nevertheless, I believe that our success in streamlining our business model, will provide the fundamental basis to re-launch Fila, especially in Europe."

March 5, 2003
www.fila.com

Fila signs new licence agreements

Fila Holding S.p.A. has signed two license agreements with its former subsidiaries in Australia and Brazil to continue with the streamline structure of the Group already in place since 2000.

In Australia, Fila reached a ten-year footwear and apparel license agreement with SM Brands. In Brazil Sport Marketing Brazilwill be operating as core licensing partner up to December 2006.

Furthermore, Fila announced an agreement with Haddad Apparel Group to design, manufacture and distribute Fila Kids apparel lines in the USA and Canada. Haddad Apparel Group, one of the largest and oldest children's apparel and accessories companies in the world, holds licensing rights for some of the best known international trademarks, including Harley Davidson, Barbie and Avirex.

The first Fila products will be hitting the market with the Holiday 2002 collection. Fila expects the new license agreements to generate additional Fila brand business late in the year 2002.

All the agreements disclosed foresee marketing activities under the Fila brand name, which will further strengthen its image. All the activities under
the licensing agreements will be supervised closely by Fila's licensing department.

Marco Isaia, Chief Executive Officer of Fila, said: "I'm very pleased of the new agreements, as well as with the results of Fila's main licenses. The
partnership with Haddad will improve Fila's brand penetration in the US and Canadian markets by leveraging from our partner's experience in kids
business. Moreover, the two new core license partnerships will improve Fila profitability through the royalties flow and reduce overall structural costs. In the past couple of years, the fixed expenses associated with the two subsidiaries together were around EUR 14 million a year. We count on the expertise and reputation of our partners to consolidate a stronger positioning in these markets".

Fila will continue signing new licenses, which in 2001, led to the agreement with Ferrari for the production and distribution of athletic footwear and
sportswear apparel with the brand of the "prancing horse".

08-09-02
www.fila.com

Fila copes with huge Q2 loss

Fila Holding SpA, the Italian sportswear an athletic trainer company, has posted a wider second quarter net loss and called a special meeting of shareholders to seek their backing for an action plan aimed at recapitalising the firm.

Fila Holding, which is based in Biella, announced this week it made a net loss of $32.6 million compared to a net loss of $27.3 million in 2001

A Fila-spokesman said that worldwide revenues fell one per cent to 205.9 million euros, with net direct sales in the staying flat at 196.3 million euros compared to Euro 198.6 million in 2001.

Apparel sales are doing rather well. They climbed nine per cent to 110.4 million euros but footwear sales on the other hand slipped 12 per cent to 85.9 million euros. US sales jumped 16 per cent to 64.2 million euros, but Europe sales plunged 14 per cent to 54.2 million euros amid lower activity in France and the UK.

Fila-sales in the rest of the world decreased by only three per cent because of the excellent performance in the Korean market – plus 21 per cent in local currency in the quarter – which was offset by a continued drop in the Latin American business - Argentina and Mexico.

Fila CEO, Marco Isaia, says he’s still pleased to highlight the progress in the North American market as well as the outstanding success of our Korean subsidiary in an otherwise very complex and difficult market environment, unexpectedly hampered by the South American crisis. Isaia added: "Our major managerial efforts to streamline and make more effective our activities are producing relevant results. I expect our goal of reducing overall operating losses throughout 2002 will be reached."

The company said its total backlog as of June 30, scheduled for delivery from July through December, was down 11 per cent in total, with apparel backlog down five per cent and footwear backlog down 19 per cent.

Fila added that at a special meeting on September 23 it will ask shareholders to apply reserves and reduce the par value of its shares from 1.30 euros to 0.50 euro each and authorise a 2-for-1 reverse stock split.

www.fila.com

08-05-02