SSI Group posts 20% income hike to P586 M

MANILA, Philippines - SSI Group Inc., the country’s largest specialty store retailer, posted a 20 percent increase in net income to P586 million for the first half of 2015 from P486 million in the same period last year, driven by its expansion program, brand portfolio and sustained operating margins.

Revenues amounted to P7.9 billion, a 19 percent increase from P6.7 billion a year earlier while operating income grew 20 percent to P1.1 billion.

“We are pleased with our performance during the first half of the year. We continue to benefit from resilient consumer demand and from a brand portfolio that allows us to reach a wide set of consumers. We  are  also  seeing  increased  efficiency  as  a  result  of  our  store expansion program,”  SSI Group president Anthony T. Huang said.

On the other hand, the company’s operating expenses increased 14 percent to P3.3 billion from P2.9 billion while operating margin for the first semester was recorded at 14.1 percent compared to 13.9 percent in the first six months of 2014.

Huang added SSI is optimistic on their entry into travel retail space considering it is a new market with excellent growth prospects.

SSI acquired recently a 50 percent stake in Landmark Management Services Ltd. to include travel retail in its business line. Landmark specializes in travel retail concepts and has existing supply and management agreements with travel retail stores in the Philippines.

As of end-June 2015, SSI is operating 771 specialty stores and has 115 brands in its portfolio.

The Tantoco-owned company markets top international brands including 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.

SSI is also operating 104 Family Mart stores and two Wellworth department stores in a joint venture with Ayala Land.