VILLAR-LED retail firms posted weaker second-quarter results due to slower sales amid a subdued property market and heightened competition.
Home improvement retailer AllHome Corp. saw a 49.5% drop in April-to-June net profit to P71.76 million from P142.08 million a year earlier, the company said in a regulatory filing.
Sales fell by 22.1% to P2.23 billion from P2.86 billion the previous year, while the cost of merchandise sold also decreased by 22.2% to P1.38 billion.
First-half net income declined by 59.7% to P113.9 million from P282.43 million in the same period last year.
Sales for the January-to-June period dropped by 28.9% to P4 billion, while the cost of merchandise sold fell by 29% to P2.48 billion due to lower sales.
“The decline was chiefly attributable to a subdued property market, which has historically been a significant driver of construction and furnishing-related expenditure,” AllHome said.
Meanwhile, AllDay Marts, Inc., operator of AllDay Supermarkets, posted an 80% decline in second-quarter net profit to P18.01 million from P88.13 million a year earlier, the company said in a separate stock exchange disclosure.
Net sales fell by 40.3% to P1.4 billion from P2.47 billion last year, while the cost of merchandise sold likewise dropped by 40.3% to P1.17 billion.
For the first half, AllDay recorded an 83.2% decrease in net income to P31.1 million from P185.13 million in the same period last year.
Net sales declined by 41.7% to P2.88 billion, while the cost of merchandise sold fell by 41.7% to P2.28 billion due to weaker sales.
“Sales decline due to heightened competition, shifting consumer preferences, and the continued rise in e-commerce, resulting in reduced in-store traffic,” AllDay said.
On Friday, AllHome shares rose by 3.26% or P0.015 to P0.475 apiece, while AllDay shares slipped by 1.15% or P0.001 to P0.086 each. — Revin Mikhael D. Ochave