SSI Group Inc. more than doubled its earnings in the third quarter, as the specialty store retailer saw robust sales from its luxury and casual brands.
In a regulatory filing, the Tantoco family-led listed company reported a net profit of P175.4 million, 107% higher than the P84.8 million posted during the same three-month period in 2018.
For the first nine months of 2019, SSI’s income surged 42% to P521.34 million, from P368 million a year ago.
Third-quarter revenues rose 10.5% to P5 billion, “driven mainly by strong performances of its luxury, bridge, casual and others categories.” Revenues jumped 7.7% to P14.9 billion during the January to September period.
Same-store sales growth stood at 6.2% in the third quarter, and at 6.8% in the nine-month period.
SSI recorded higher sales despite trimming the number of stores to 583 as of end-September, from 602 a year ago. Gross selling space dipped 3% to 118,258 square meters (sq.m.) as it closed 18 stores covering 2,505 sq.m. However, it added seven stores covering 4,418 sq.m., including a Zara store at One Bonifacio High Street, reopening of Zara at SM Mall of Asia and the first Tommy Hilfiger Jeans store at Robinsons Place Manila.
For the January to September period, revenues from luxury and bridge brands surged 25% to P4.4 billion, while sales of fast fashion brands fell 6% to P4.5 billion.
Casual brands contributed P1.95 billion in sales, up 12%, while footwear, accessories and luggage saw sales dip by 3% to P1.7 billion.
Operating expenses went up 3.5% to P5.4 billion during the nine-month period.
“During the 3rd quarter, and through the first nine months of the year, the Group has benefited from a focus on strong execution, cost rationalization and the generation of operating efficiencies. This focus has reinforced the Group’s ability to capture growing consumer spending within a highly competitive and evolving industry,” Anthony T. Huang, SSI Group president, was quoted as saying in a statement.
As of end-September, SSI had 92 brands under its portfolio, such as Gucci, Salvatore Ferragamo, Zara, Samsonite, Lacoste, Marks & Spencer, Old Navy, Gap and Muji. It added Crystal Jade during the third quarter, adding to its food brands TWG, SaladStop! and Shake Shack.
