Strong sales lift SSI’s bottom line in Q3
SSI GROUP, Inc. grew its profit by a fourth in the July to September period, boosted by higher sales across its brands.
In a regulatory filing, the specialty store retailer reported a net income of P84.77 million in the third quarter of 2018, against P67.7 million in the same period a year ago. This brought nine-month earnings 8% higher to P368.05 million.
Net sales for the quarter ending September reached P4.53 billion, 10% higher year-on-year, for a total of P13.79 billion from January to September. This marks an 11% growth from the same period a year ago, despite a 7.6% annual drop in total selling area.
SSI attributed the robust sales growth to “strong consumer demand coupled with selective price increases.”
During the nine-month period, fast fashion sales went up 3% to P4.74 billion, while luxury and bridge brands generated 27% higher sales at P3.5 billion. SSI’s fast fashion brands include Zara and Bershka, while its luxury lines include Prada, Burberry and Tod’s.
SSI’s same-store sales growth stood at 12.9% in the third quarter, and accelerated to 12% in the first nine months of the year.
“The Group posted strong third quarter results driven by resilient mid and high end discretionary spending as well as by the firming up of gross profit margins,” SSI President Anthony T. Huang said in a statement.
The company operates a network consisting of 95 brands, including international luxury brands Hermes, Gucci, and Salvatore Ferragamo, among others.
“Within a more volatile macro economic environment the Group continues to benefit from the strength of its brand portfolio and its store network and from the work that we have put into optimizing our expense base,” Mr. Huang said.
Shares in SSI picked up 2.63% or seven centavos to close at P2.73 each on Wednesday. —