SSI Group's net income dips as it closes 81 stores
MANILA, Philippines – SSI Group Incorporated, the country's largest specialty store retailer, saw its net income decline by more than a half to P241 million in the first half of the year, as it closed 81 shops.
The Tantoco-owned specialty store retailer told the Philippine Stock Exchange (PSE) that its first half net income saw a 58.8% decline to P241 million, from the P586 million recorded in the same period last year. It had closed down shops as part of a store rationalization program.
SSI Group's net sales, however, climbed 8.6% to P8.58 billion in the first 6 months of the year, from the P7.9 billion recorded in the first half of 2015.
Its operating expenses grew faster at 12.6% to P3.67 billion in the first half of 2016, from P3.26 billion a year ago.
Gross profit margin for the first 6 months of the year was at 50.1%, from 55.3% during the same period a year ago due to increased discounting and promotional activities.
As of end-June this year, SSI Group operates 737 stores, down from 771 stores.
As part of the company's store rationalization program, SSI Group also booked losses on disposals of property and equipment worth P33.5 million.
"SSI posted strong sales growth during the second quarter of the year, even as we selectively expanded our store network and rationalized stores that were performing below expectations," SSI Group president Anthony Huang said in a statement.
"Over the 2nd half of the year, we will continue to focus on top line growth and expect to begin realizing additional benefits from our store rationalization program. We likewise expect our gross margins during the second half of the year to stabilize as against the year ago period," Huang added.
As of end-June 2016, the group's brand portfolio has 117 brands.
Its brand portfolio can be classified into 5 categories – luxury and bridge; casual; fast fashion; footwear, accessories, and luggage; and others, which include home furnishing and accessories, interior design items, food, and personal care. – Rappler.com