Business

SSI Group plunges into red as pandemic crashes sales

High-end specialty retailer SSI Group Inc. (SSI) sank into the red in the second quarter as sales plunged over the coronavirus pandemic.

In a statement, SSI said it incurred a P476 million net loss in April to June, a reversal of the P346 million profit booked in the same period last year.

Sales plunged 85% to P742.78 million from P4.95 billion due to the temporary closure of substantially all its stores from March 17 to May 15 in line with the government’s stay-at-home order to curb the spread of COVID-19.

In the six months to June, SSI incurred a P476.3 million loss versus a P345.9 million net income the previous year.

Since reopening on June 1, the group has seen steady increases in weekly sales. It has also seen a 375% percent surge in e- commerce sales in the first half.

“I am optimistic with respect to the steady increases we have seen in brick and mortar sales and that we are ready to compete and operate under the “new normal.” We are also focused on building out what is already the most diverse e-commerce presence amongst local specialty retailers, into a world class e-commerce portfolio,” said Anthony T. Huang, president of SSI.

Huang said the group has scaled down its capital spending this year amid the tough business environment.

The group has nine e-commerce sites, bananarepublic.com.ph, beautybar.com.ph, dunelondon.ph, gap.com.ph, lacoste.com.ph, lush.com.ph, payless.com.ph, superga.ph and zara.com/ph.

As of June 30 this year, the group had 95 brands in its portfolio.

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