Korn Ferry (NYSE: KFY) reported fee revenue rose 13.8% in its fiscal second quarter ended Oct. 31. The increase was 20% on a constant currency basis. Fee revenue increased in all lines of business except executive search, which was down 7.3% year over year.

The Los Angeles-based provider of executive search, RPO and other services cited the acquisitions of Lucas Group, Patina Solutions Group Inc. and Infinity Consulting Solutions — which are included in its professional search and interim segment — as significant factors in the increase in fee revenue compared to the year-ago quarter.

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CEO Gary Burnison said it is clear that the global economy has been in transition for several months.

“We are seeing change on every front — from over a decade of high liquidity and historically low interest rates to changes in Central Bank policies, significant shifts in global trade lanes and persistent inflationary pressures,” Burnison said. “In response, companies and our clients will undoubtedly have to continue adjusting their organizational and workforce strategies to tomorrow, which is opportunity for Korn Ferry.”

Fee revenue by segment

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Executive search revenue fell 4% in constant currency from the prior-year period, driven by a decrease in the number of the engagements billed. Executive search fee revenue decreased in North America and Asia and was partially offset by higher fee revenue in EMEA and Latin America.

Executive search fee revenue by geography

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Guidance

Korn Ferry forecast third-quarter fee revenue to range between $660 million and $690 million. 

Share and market cap

Shares in Korn Ferry were down 7.05% to $50.15 as of 12:24 p.m. Eastern time; they were 7.91% above their 52-week low, according to FT.com. The company had a market cap of $2.88 billion.