SSI Group, Inc. (SSI) is hopeful for an upswing in demand after the enhanced community quarantine (ECQ) as it said the 52% jump in its 2019 earnings proves the appeal of its brands to Filipinos.

In a statement Wednesday, the listed specialty retailer said its net income last year surged 52% to P922 million, while its recurring income increased 34% to P976 million. Revenues rose 11% to P22.4 billion, and same store sales or sales from existing stores grew 7.2%.

These results backed the company’s belief that it would be able to recover its losses from having to close almost all of its stores while Luzon is under ECQ since mid-March.

“We view last year’s performance as proof that consumers have a strong affinity for our brands and products and as such, we expect that as conditions normalize we will see a resurgence in demand,” SSI President Anthony T. Huang said.

“However, during these extraordinary times we will be utilizing our financial gains in a prudent manner to ensure that we are able to weather the challenges brought about by COVID-19 (coronavirus disease 2019 pandemic),” he added.

SSI is the Philippine retailer of international brands such as Gucci, Prada, Kate Spade, Zara, Marks & Spencer, Gap, Lacoste, Banana Republic, Muji, Lush, TWG, SaladStop and Shake Shack.

When the government imposed an ECQ due to the COVID-19 pandemic, SSI said its operations had to be limited to takeout and delivery at its Shake Shack branches in Central Square and SM Megamall, and Marks & Spencer Food Stores in Rockwell, Central Square and Eastwood Mall.

Beauty Bar and Lush are also operating for delivery through their respective online platforms.

SSI said its focus on e-commerce helped it tally higher sales last year, together with increased focus on cost optimization and operating efficiencies.

SSI has eight e-commerce properties as of end-2019: zara.com.ph, lacoste.com.ph, gap.com.ph, bananarepublic.com.ph, beautybar.com.ph, payless.ph, lush.com.ph, superga.ph and dunelondon.ph. It also noted its total retail space was reduced 1% to 118,922 square meters last year.

“Our performance in 2019 validates the strategies that SSI first began to put in place in 2017, strategies focused on strengthening our store network and on maximizing the returns on our unique brand portfolio,” Mr. Huang said.

“These strategies also included an expansion into e-commerce, with SSI in 2019 evolving into the country’s only brick and mortar specialty retailer with a diverse and pervasive e-commerce presence,” he added.

Shares in SSI at the stock exchange inched up nine centavos or 7.44% to P1.30 each on Wednesday. — Denise A. Valdez

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