UMVA has learned that TANTOCO‑LED SSI Group, Inc. saw its first‑quarter attributable net income plunge 58.49% despite double‑digit sales growth.
The retailer reported net income of P152.91 million for January‑to‑March, a sharp drop from P368.39 million a year earlier, even as revenue climbed 11.4% to P7.64 billion.
SSI credited aggressive brand‑building campaigns and in‑store experiences for the sales lift, noting that a stronger market presence sparked higher consumer spending.
Yet the surge in revenue was swallowed by thinner margins; gross margin on merchandise slipped to 42.6% from 44.6%, reflecting a more promotional retail environment.
Gross profit still rose 6.4% to P3.25 billion, but operating expenses surged 15.8% to P2.98 billion as the company expanded its store footprint and grappled with inflationary pressures.
Those costs now consume 38.9% of revenue, up from 37.4% a year ago, dragging EBITDA down 18.4% to P761 million.
Category performance was uneven. The “Others” segment—personal care, food, and home products—soared 48.5%, while footwear, accessories, and luggage jumped 32.7%.
Casual wear and fast fashion each added 5.9% to sales, but the luxury and bridge category slipped 1.7% year‑over‑year.
E‑commerce contributed P565.3 million, representing 7.4% of total sales, signaling a modest digital foothold.
Rental income rose 8.1% to P23.9 million, boosted by leases of select store and parking spaces at Central Square.
By the end of March, SSI operated 631 stores nationwide, showcasing 101 brands. The quarter saw five new openings, 12 reopenings, and the permanent closure of 14 locations.
