MILAN — Fila managed to narrow its second-quarter operating loss by cutting costs, but the bottom line still sank deeper into the red because of a write-off on its struggling British unit.Concurrently, Fila asked shareholders to approve special measures designed to recapitalize the company, which has endured losses in the last four years. Among these moves, contingent upon shareholder approval, would be dipping into company reserves, executing a capital increase and enacting a 1-for-2 reverse stock split. A special meeting to vote on these proposals will be held Sept. 23.The net loss for the quarter ended June 30 widened to $34.9 million from $30.7 million in the prior-year quarter. However, because the company issued new shares last year, the loss per share contracted to 57 cents per share from $1.10 the year before. Dollar figures have been converted from the euro at current exchange rates.Despite sponsoring athletes like tennis star Jennifer Capriati, Ferrari driver Michael Schumacher and skier Alberto Tomba, Fila hasn’t managed to capitalize on its high-profile brand and pull itself into the black. Sales fell 1 percent to $202.7 million, although Fila said they would have risen by 2 percent on a constant currency basis. Cost-cutting narrowed the operating loss to $4.5 million from $15.1 million the year earlier. However, Fila’s bottom line suffered the greatest damage from a $14.5 million write-off on goodwill in Fila U.K."The write-off was required to recognize adverse changes in the business climate since Fila acquired Fila U.K., because, despite the expected operating improvement of the subsidiary, an immediate return to past conditions is not foreseen," the company said in a statement.Losses on foreign exchange came to $1.7 million against a gain of $348,000 the year before. The U.S. dollar depreciated by 5 percent against the euro on a quarterly average basis, Fila said.Holding di Partecipazioni Industriali, which owns 71.8 percent of Fila, has been trying to sell the embattled sports brand since June of last year. In December, HdP said it was in exclusive talks with U.S. fund Continental Partners. But that situation has changed. HdP is now talking to more than one prospective buyer, a company spokeswoman said.Apparel sales rose 9 percent to $108.7 million, while footwear sales dropped by 12 percent to $84.6 million.Citing a 33 percent jump in sales at its Enyce brand, Fila said U.S. revenues advanced by 16 percent to $63.2 million. Lower sales in France and the U.K. pushed down European sales by 14 percent to $53.4 million. Sales in the rest of the world fell by 3 percent to $76.8 million as strong sales in Korea offset a drop in sales in Argentina and Mexico.
"In order for Shudu to wear garments, she needs to be able to put them on, just like you would in the real world. You have to digitize the outfits," said Cameron-James Wilson on dressing 3-D model @shudu.gram for her WWD photoshoot. #wwdfashion ( 📸: @cjw.photo )
“Shudu is a digital supermodel, a very glamour and amazing woman. But she’s 3-D,” says Cameron-James Wilson, a fashion photographer and the creature of @shudu.gram. Here, Shudu wears @cushnieetochs for her debut fashion editorial. #wwdfashion (📷: @cjw.photo)
“It is the fierce female performances that came before me that made be able to clearly identify for myself what it was that I wanted to do, what kind of artist I wanted to be, what kind of films I wanted to make,” said @brielarson at the Women in Film Crystal + Lucy Awards. See more pictures from the event on WWD.com. #wwdeye (📷: Matt Baron)
“On a personal level, it’s my vision to create a really different idea with their look to be at the epitome of women’s fashion in South Korea – to create a new milestone,” said stylist @chochowon on dressing K-pop’s most fashionable girl group, @blackpinkofficial. WWD’s @mistywhitesidell sat down with Won ahead of the group’s new album release, “Square Up,” which is out today. Read the full interview on WWD.com. #wwdfashion #blackpink_squareup #blackpink
For @ralphlauren, 2018 is a reason to celebrate: It marks the brand’s 50th year in business. Last year’s chauffeured show in Bedford, NY featuring his vintage car collection may have seemed like the big celebration to show-goers, but they were wrong. The official celebration will be held on September 7 during #NYFW. Get all the details on WWD.com. #wwdfashion (📷: @giovanni_giannoni_photo)