Tantoco-led retail group’s profit sinks on high expenses
Increased expenses related to its expansion have crimped the net income of luxury brand retailer SSI Group Inc. of the Tantoco family last year.
In a statement, SSI Group said net earnings fell 18.8 percent to P810.7 million due to a tough business environment.
“SSI faced a more competitive environment during the 2nd half of 2015. However, we remain focused on growing our market share and on optimizing the efficiency of our store network,” said Anthony T. Huang, SSI Group president.
Net sales grew 14.5 percent to ₱17.4 billion but the growth was offset by rising costs as the company continued to expand its store network and brand portfolio.
Operating expenses grew 13.6 percent to ₱7.6 billion with total depreciation and amortization expenses surging 43.9 percent to ₱1.5 billion.
The group ended 2015 with a total retail footprint of 792 stores in Metro Manila and other major cities in the Philippines, as well as two stores in Guam. It opened 69 net new specialty stores an added 11 new brands during the year.
The new store openings allowed the group to increase its gross selling area by 10.1 percent, or 13,505 square meters.
- As of the end of Dec. 31, 2015 SSI’s brand portfolio consisted of 116 brands which include the newly-acquired Amazonas, Castell, Charming Charlie, Coach, Jelly Bunny, Joe Fresh, Kurt Geiger, Lipault, Make-up Factory, Max & Co and Radley.