SSI income jumps 28% on sales of luxury brands

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EARNINGS of SSI Group, Inc. increased by 28% in the first quarter, driven by “healthy” consumer demand and strong same-store sales growth.

In a regulatory filing, the leading specialty store retailer said net income for the first three months stood at P170.6 million, fueled by a 7.2% rise in revenues to P4.9 billion.

“SSI continued to experience healthy sales growth during the period driven by the performances of its luxury and bridge, and casual categories. The Group also posted strong same-store sales growth during the period of 8.6%,” the company said.

By category, sales of its luxury and bridge brands surged 25% to P1.37 billion, while sales of casual brands rose 19% to P637 million.

However, revenues from fast fashion brands slipped 4% to P1.62 billion, while sales of footwear, accessories and luggage also dipped 4% to P558 million.

During the January to March period, SSI reported a 5.4% year-on-year drop in total selling space as it focused on store openings in developed locations.

As of end-March, SSI’s total floor area covered approximately 119,754 square meters over 594 stores nationwide. The company opened seven stores covering 833 sq.m., while closing nine stores covering 1,384 sq.m.

The company also noted an improvement in its gross profit margin to 42.4% from 42.1% in the same period last year.

“The Group’s first quarter results reflect healthy same-store sales growth and the increased flexibility afforded by our lower operating expense base and inventory levels. Our lower opex (operating expense) base and inventory levels allow us to be more responsive to macroeconomic change, to shifts in consumer behavior and to opportunities to acquire exciting new brands,” Anthony T. Huang, group president of SSI, said in a statement.

The company has 90 brands in its portfolio, including Gucci, Prada, Kate Spade, Zara, Marks & Spencer, Gap, Lacoste, Banana Republic, Muji, and Old Navy.

Early this month, SSI opened the country’s first Shake Shack located at Central Park Square in Bonifacio Global City.

Shares in SSI went up by 7.01% or 0.22 centavos to close at P3.36 each on Wednesday. — V.M.P.Galang