In its annual report, SSI said its Gucci venture, Luxury Goods Philippines Inc. (LGPI), recorded a profit of P121.6 million—12.5 times the earnings of Prada Philippines, which posted a net income of P9.75 million.
LGPI’s revenues reached P1.56 billion, or six times the size of Prada’s P255.64 million.
The gap highlights the superior brand traction of Gucci, founded in Florence, Italy in 1921 and now owned by French multinational giant Kering. Prada, founded by Mario Prada in Milan in 1913, remains family-owned.
SSI, which owns 25 percent of LGPI and 40 percent of Prada Philippines, did not provide a store breakdown for each venture, which could help explain the wide difference in financial performance.
But it noted LGPI was a larger entity with assets of P2.3 billion (and liabilities of P1.57 billion), compared to Prada Philippines’ assets of P518.5 million (liabilities of P128.8 million).
SSI's 2024 performance
SSI, which sells goods from nearly a hundred brands across 588 stores, saw profits slip 3 percent to P2.51 billion in 2024, while revenues grew 8.2 percent to P29.9 billion.
Alfred Benjamin R. Garcia, research head at AP Securities Inc., expects high-end purchasing to hold steady despite headwinds facing the economy.
“What we’ve seen in the past two years is that luxury segment demand, for both retail and property, tends to be more resilient than the mass market,” he told InsiderPH.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
