Upson sales rise 6.3% in 2025 despite smaller store network

LISTED information technology and electronics retailer Upson International Corp. said sales rose 6.3% in 2025 despite ending the year with fewer stores, as the company adjusted its branch network amid expansion and operating cost pressures.

In a statement on Tuesday, the company said it opened 14 branches and closed 19 during the year, reducing its total store count to 240 from 245 in 2024.

“As with any retail expansion, there is a natural time lag between store opening, sales maturity, and the initial cost of investment,” the company said.

“Guided by past experience, management has seen that the sales maturity of newly opened stores will contribute more meaningfully to cover the related investment and operating costs, supporting stronger performance in the near term,” it added.

Despite the smaller network, Upson said average sales per store rose 8.5% in 2025, while same-store sales growth reached 6.1%.

Sales per square meter increased 4.1%, while total floor space expanded 2.1%.

Gross profit margin improved to 21.48% from 20.97% a year earlier.

The company said it also increased inventory purchases toward the end of 2025 in anticipation of possible supply disruptions and supplier price increases.

Upson operates retail brands such as Octagon, Microvalley, Gadget King, and Octagon Mobile.

As of end-2024, the company carried more than 13,000 stock keeping units across categories including personal computers, printers, communication devices, storage products, networking equipment, peripherals, components, accessories, and software.

For the first quarter, Upson reported a 14.96% increase in net income to P146.68 million from P127.59 million a year earlier, driven by higher product sales and improved pricing.

Sales during the January-to-March period rose 2.4%, supported by higher prices for graphics processing unit and memory-related products amid tight supply linked to artificial intelligence-related demand.

The company also reported higher sales of mobile phones and do-it-yourself products during the quarter.

Gross revenue rose 2.37% to P3.19 billion from P3.11 billion a year earlier. — Alexandria Grace C. Magno