SSI Group posts 63% profit hike on store expansion

MANILA, Philippines - Profits of the country’ largest specialty store retailer SSI Group Inc. surged by more than half last year behind the company’s most aggressive store expansion program in history.

The listed Tantoco-led company said its net income ballooned 63 percent to P998.7 million last year from P613.7 million in 2013.

SSI attributed the surge in profitability last year to its store expansion program, the depth of its brand portfolio, and sustained gross profit margins.

“2014 was a landmark year for SSI as we executed our largest store expansion program to date,” company president Anton T. Huang said.

“We continue to leverage on a brand portfolio that resonates with consumers, on the availability of prime retail space, and on evolving consumption patterns and consumer tastes. We expect that these factors will continue to drive our performance in 2015,” he added.

SSI said revenues last year increased nearly a fifth to P15.2 billion, with revenues in the fourth quarter alone reaching P5.2 billion.

The company expanded its store network a total of 126 stores, adding 35,500 square meters of new retail space to increase its retail footprint 36 percent year-on-year.

At the end of 2014, SSI said the company had 106 brands in its portfolio and was operating 723 specialty stores covering 134,000 square meters of retail space, as well as 90 FamilyMart convenience stores.

The listed retailer is earmarking P1.5 billion for capital expenditures (capex) this year to add around 130 new stores to its network.

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.

The company ventured into online retailing in November last year to complement its bricks and mortar stores with an e-commerce site called ssilife.com.ph.

The online retailing site is initially offering brands such as Marks & Spencer, TWG, Oliviers & Co, Payless Shoe Source, Nine West, Aerosoles, Bass, Superga, Steve Madden, MBT, OkaB, A/X Armani Exchange, Replay, High Sierra, Samsonite, Beauty Bar and MakeRoom.