SSI Group Inc., the country’s largest specialty store retailer owned by the Tantoco family, reported a 58.8-percent decline in net income to P241 million in the first half from P586 million a year ago, after it closed down 81 stores as a part of store rationalization.
SSI Group said in a financial report filed with the stock exchange net sales climbed 8.6 percent to P8.58 billion from P7.9 billion recorded in the first half of 2015.
Operating expenses grew 12.6 percent to P3.67 billion from P3.26 billion.
Gross profit margin in the first six months reached 50.1 percent, down from 55.3 percent a year earlier, on increased discounting and promotional activities as the group continued to operate within a more competitive environment.
The company was operating 737 stores as of end-June, down from 771 stores a year ago. It opened 26 new stores and shut down 81 stores covering 6,987 square meters.