Locked-down stores pull down SSI’s income by 36%

SSI Group, Inc. saw its net income in the first quarter dwindled by 36% yearon-year as its physical stores were ordered shut during the nationwide quarantine imposed against the threat of the global pandemic.

Despite a “strong footing” in January and February, with sales rising by 12%, the listed specialty retailer said it booked a lower net income of P110 million in the first three months of the year, while sales were also down 13% year-on-year.

This was a result of the quarantine measures that led to the temporary closure of the company’s brick-and-mortar stores and the halt in fulfilling online orders starting mid-March.

In the midst of “extraordinary” operating conditions, SSI Group President Anthony T. Huang believes that its brand portfolio, store network, and customer base will be proven “resilient” throughout the rest of 2020.

The company reopened its network of specialty stores on June 1, ensuring health and safety protocols are in place. It also returned to fulfilling online orders in mid-May.

Last month, SSI added the online site of Marks and Spencer Philippines on its range of e-commerce sites. It plans to further expand its online segment with more site launches for the rest of the year.

SSI has also launched its concierge service The Specialist, which helps customers shop from home, then arranging payments and deliveries for them.

Mr. Huang said the company is “encouraged” with the “steady” growth of SSI brand’s sales, as well as with its e-commerce revenues which have “more than doubled.”

“We look forward to the gradual recovery of our operations as the country begins to reopen and build on the gains made so far in the struggle against the COVID (coronavirus disease 2019) health crisis,” he said.

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.

On Wednesday, shares in SSI were unchanged at P1.13 each.