SSI Group profit balloons 49% to P674 M in 9 mos

MANILA, Philippines - Tantoco-led specialty retailer SSI Group Inc., a company which went public last month, improved its profits by almost half in the first nine months of the year on the back of continued expansion of its store network and brand portfolio.

In a disclosure to the local bourse yesterday, SSI said its net income in the January to September period ballooned 49 percent year-on-year to P674 million.

Revenues likewise jumped 16 percent to P10 billion, the country’s leading specialty store retailer said.

 “The group’s performance was driven by the continued expansion of its store network and brand portfolio, and sustained gross profit margin levels,” SSI said.

Over the 12-month period ending September, SSI said it has added a total of 87 new stores or an additional of 23,000 square meters to its store network, representing a 24 percent increase in its retail footprint year-on-year.

Gross profit margins likewise remained healthy, rising to 56 percent from 50 percent a year ago as the group continued to benefit from strong sell-through rates.

“SSI is entering the fourth quarter on strong footing as we continue to reap the benefits of our store expansion program and of initiatives implemented to enhance profitability,” SSI president Anton Huang said.

SSI said it is currently in the process of expanding its store network as it seeks to capitalize on favorable market conditions, evolving consumption patterns and consumer tastes and the availability of prime retail space in new and existing mall developments.

The company is allocating P2.5 billion of the P7.45 billion it raised from its initial public offering last month to open more stores this year and next.

“We are optimistic that we will meet this year’s targets and we have seen a strong start to the Christmas shopping season.” Huang said.

SSI is the country’s leading specialty store retailer, operating more than 100 international brands which include Hermès, Prada, Gucci, Burberry, Salvatore Ferragamo, Lacoste, Michael Kors, Kate Spade, Gap, Old Navy, Zara, Stradivarius, Bershka, Aeropostale, Samsonite, Nine West, Payless Shoe Source, Beauty Bar, Marks and Spencer, Pottery Barn and TWG, among others.