SSI Q3 profit plunged 65% as demand for luxury goods dropped
Specialty retail firm SSI Group Inc., distributor of such high-end brands as Hermes, Bottega Veneta, Cartier, Givenchy and Burberry, suffered a 65-percent drop in its third-quarter bottom line as demand for luxury goods plummeted just as the corruption probe escalated.
The Tantoco-run company told the Philippine Stock Exchange that earnings in the July to September period plunged to P188.1 million from P537.2 million in the same period last year.
This pulled down the nine-month income by 49.3 percent to P639.8 million from P1.26 billion last year.
To recall, President Marcos ordered an investigation into possible anomalies in flood control projects during his State of the Nation Address in July.
The probe has since widened in depth and scope, battering investor confidence and spurring some belt-tightening.
“Sales growth during the period was muted given weak high-end discretionary spending during the third quarter,” said SSI.
Expenses
SSI data showed that third-quarter operating income sharply declined by 56 percent to P280.3 million from P636.3 million.
As of the first nine months, operating income was slashed by almost half, dropping 44.9 percent to P914 million from P1.65 billion a year ago.
Operating expenses as of September, meanwhile, increased 12.4 percent to P8.18 billion.
Its topline barely moved at P20.32 billion versus last year’s P20.18 billion. For the third quarter, the group’s sales dipped 0.9 percent to P6.88 billion.
SSI Group said the luxury and bridge category—covering high-end and premium labels—saw a 3.8-percent decrease. The casual wear category fell 2.9 percent.
