SSI Group Rebounds in 3Q 2020, Trims Net Losses to P285 Million
The SSI Group Inc seems to be on the road recovery. According to its earnings report for the third quarter of 2020, the country’s leading specialty retailer posted sales of P2.3 billion during the period, reflecting an increase of 208 percent compared to the P743 million recorded during the second quarter.
Total sales for the first nine months of the year reached P7.3 billion, or 49.1 percent of the P14.9 billion it booked in the same period in 2019.
Net losses for the third quarter dropped over 50 percent to P285 million from P586 million the previous quarter. The company also reported positive operating cashflow of P414 million in the third quarter.
SSI operates over 500 brick-and-mortar stores of leading international brands across different categories (apparel, accessories, footwear, home and personal care), including brands like Calvin Klein, Lacoste, Prada, Zara, Tory Burch, Massimo Dutti Buberry, Givenchy, and Michael Kors. The company said its sales continue to be affected by the COVID-19 pandemic, which forced it to close all of its stores for two and a half months during the second quarter of 2020. However, the company said it was able to keep “substantially all of the stores” in its store network open during the third quarter, “even during the two-week MECQ period in August.”
SSI said it its ecommerce business continues to see “significant growth,” with sales up over 300 percent year-to-date.
While SSI already operates several ecommerce sites—including bananarepublic.com.ph; beautybar.com.ph; dunelondon.ph; gap.com.ph; lacoste.com.ph; lush.com.ph; payless.ph; superga.ph; and marksandspencer.com.ph—it launched its most aggressive play in the online shopping space last November 6.
The company said Trunc.ph is “a unique multi-brand ecommerce site that carries more than 50 of SSI’s most well-known fashion and home brands, and over 50 personal care brands. It added that the new site is also the region’s first ecommerce site “to offer a full range of brands that span the luxury, casual, fast fashion, home and personal care categories.”
“Despite the current challenging operating environment, we are seeing steady increases in sales, which point towards the resilience of SSI’s core customer base and the relevance of our brand portfolio,” SSI President Anthony T. Huang said. “We continue to be focused on creating experiences that will help to draw customers into our stores, as well as on expanding our digital and e-commerce channels.”
In addition to fashion retail brands, SSI also has a food business. It owns the local franchise of burger restaurant Shake Shack as well as several Salad Stop! branches.