SSI Group Q3 income drops 65% to P188M as luxury, casual sales slip – BusinessWorld Online
TANTOCO-LED specialty retailer SSI Group, Inc. posted a 64.99% drop in third-quarter (Q3) attributable net income to P188.08 million from P537.18 million a year earlier, as weaker sales in its luxury, bridge, and casual wear segments weighed on results.
Revenue for the three months ending September fell slightly by 0.93% to P6.9 billion, while net sales declined 0.9% to P6.88 billion, the company said in a regulatory filing on Friday.
The drop in Q3 performance was mainly due to lower sales in the luxury and bridge segments, which fell 3.8%, and casual wear, which declined 2.9%, reflecting reduced discretionary spending in the high-end market during the quarter.
For the January-to-September period, SSI recorded a 0.74% increase in net sales to P20.32 billion from P20.18 billion last year, driven primarily by footwear, accessories, and luggage. Other segments — including personal care, food, and home — saw modest gains of 0.9% to 1.7%.
SSI’s e-commerce sales contributed P1.57 billion, representing 7.7% of total sales in the first nine months. The company also expanded its retail footprint by acquiring 99.4% of Rustan Marketing Corp. for P232 million in March.
By the end of September, SSI operated 613 stores nationwide across 103 brands, having opened 17 and closed 2 stores during the third quarter.
On Monday, SSI shares rose 4.25% or 10 centavos to close at P2.45 per share. — Alexandria Grace C. Magno