Prada inks JV with SSI to expand presence in the Philippines

Prada Philippines, Inc. is a newly formed joint venture company owned 60 percent by Prada S.p.A and 40 percent by SSI Group’s Stores Specialists, Inc.

The JV company will own and operate Prada stores in the Philippines.

SSI Group said in a filing with the Philippines Stock Exchange that the joint venture partnership is expected to accelerate the growth of the Prada brand in Philippines and enable operating efficiencies, as SSI and Prada transition from a franchisee-franchisor relationship to joint venture partners.

SSI's initial investment is 16.67 million Philippine pesos, while Prada's initial investment is 25 million Philippine pesos. At completion, SSI's total investment in Prada Philippines will be 152 million Philippine pesos, while Prada's total investment in the joint venture will be 228 million Philippine pesos.

Prada saw its sales growth decelerate during the third quarter but the company expects sales for the year will still be higher due to strong performances in Asia and Europe. Nine-month sales were 3.34 billion euros, an increase of 12 percent currency neutral, down from the 17 percent increase reported in first half sales.