Joint venture losses drag SSI Groups 9-mth profits

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TANTOCO-LED luxury retailer SSI Group Inc. recorded a 4-percent decline in its nine-month net income to P701 million from a year ago, dragged by losses incurred by its joint ventures.

Excluding such losses, net income stood at P865 million, up 9 percent from a year earlier.
The luxury retailer said nine-month revenue grew by 17 percent from a year ago to P11.8 billion as new stores contributed to sales growth.

“Despite a more competitive environment in the third quarter, the group was able to post strong sales growth during the period. Amidst an evolving retail landscape, we are focused on continuing to grow our market share and on optimizing the efficiency of our store network and our brand portfolio,” Anthony Huang, SSI Group president, said in a statement.

As of end-September, SSI Group was operating 781 stores carrying 115 brands.  This translates to more than 143,000 square meters of retail space, or 22 percent wider from a year ago.


From its convenience store joint venture, the company has 113 FamilyMart stores in its portfolio, 31 of which are franchised, while the balance is company-owned.

Other than FamilyMart – which is a joint venture with Ayala Land Inc. (ALI), Japan’s FamilyMart Co. Ltd. and Itochu Corp. – SSI also operates two Wellworth department stores in partnership with ALI.

SSI Group is expanding its operations aggressively this year and next, allocating a budget of P2 billion for 2015 and P1.7 billion for 2016 to add 21,000 square meters and up to 17,000 square meters of gross leasable space, respectively.

Huang said earlier that they expected higher retained earnings and profits this year than last year, seeing “19 percent to 22 percent growth in both top-line and net income.”

Established in 1987, SSI Group first operated Rustan’s Group’s specialty retail brands.
Since 1999, after acquiring luxury brands Lacoste, Salvatore Ferragamo and Marks and Spencer, the company has been growing rapidly, adding other retail brands to its portfolio, including Ralph Lauren, DKNY, Kenneth Cole, Burberry and Banana Republic, among others.

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