SSI Group Inc. (SSI) has entered into a P350-million joint venture partnership with G Distribution B.V. (Gucci) in a bid accelerate the growth of the Gucci brand in the Philippines.
SSI said in a disclosure to the stock exchange Wednesday wholly-owned unit Store Specialists Inc. and GUCCI are forming a joint venture company to be called Luxury Goods Philippines Inc. (LGPI), which will develop the Gucci brand in the Philippines.
LGPI will have an initial capitalization of P350 million, with SSI owning 25 percent and Gucci holding the balance of 75 percent.
“The joint venture between SSI and Gucci further strengthens the cooperation between Gucci and SSI, and is expected to further accelerate the growth of the Gucci brand in the Philippines and enable operating efficiencies, as Gucci and SSI transition from a franchisor-franchisee relationship, to joint venture partners,” said SSI.
LGPI is expected to beging operations on June 1, 2022, and will own and operate Gucci stores in the Philippines.
The SSI Group is the country’s leading specialty retailers, with an established brand portfolio that includes some of the world’s most recognized international brands.
SSI in the first quarter of the year recorded net income of P68 million, a reversal of the P99-million loss posted in the same period last year.
First-quarter net sales rose 28 percent year-on-year to P4.5 billion as the group continued to see a recovery from the COVID pandemic.
E-commerce sales climbed 21 percent year-on-year and currently account for 9.4 percent of the total first-quarter revenues.
“During the 1st quarter of 2022, the group continued to benefit from the resilience of our core customer base, the uniqueness of our brand portfolio, and the strength of our primary mall locations,” said SSI president Anthony Huang.
“Despite possible headwinds in 2022 in the form of higher inflation and a weaker peso, we continue to be confident that SSI has the resources and expertise necessary to manage volatile market conditions,” he said.