HIGHER SALES from its luxury and fast fashion segments helped SSI Group, Inc. deliver a 3.5% growth in earnings during the July to September period.
In a regulatory filing, the listed specialty store retailer reported its net income attributable to the parent increased to P67.7 million during the third quarter, against the P65.4 million a year ago.
Net sales went up 2.7% to P4.16 billion for the three-month period, which the company attributed to its luxury and bridge, as well as fast fashion categories, as well as strong same-store sales. Among the brands under its portfolio include Gucci, Prada, Lacoste, Zara, Gap, Old Navy and Marks & Spencer.
On a nine-month basis, SSI’s attributable profit grew by 11% to P342 million, despite recording flat revenues for the January to September period at P12.6 billion.
“The year-to-date decrease in net sales of 0.4% is in line with the Group’s store rationalization program, which seeks to improve the overall sales quality and operating efficiency of the Group’s store network. The rationalization program also seeks to strengthen the Group’s dominant position in high productivity, central locations,” the company said.
As of end-September, SSI’s store network stood at 652 stores covering 131,885 square meters, 6.8% lower than the 9.597 sq.m. during the same period last year.
During the third quarter, SSI opened 7 new stores, while closing 20 stores. It also added Estee Lauder to its brand portfolio.
“Improvements in sales productivity and operating margin reflect sustained consumer demand, the increased efficiency of our store network and the strength of our brand portfolio. We enter the Christmas shopping season confident that SSI is in a strong position to capture increasing discretionary spending,” SSI President Anthony T. Huang said in a statement.
The company noted that operating expenses slowed during the nine-month period, lower by 5% to P5.1 billion as the group consolidates its existing stores in order to maximize operations.
Shares in SSI shed seven centavos or 2.05% to close at P3.34 each at the Philippine Stock Exchange on Thursday. — Arra B. Francia
