SSI Group earnings fall due to ECQ

Published July 2, 2020, 3:05 PM

by James A. Loyola

The SSI Group reported a 36 percent drop in net income for the first quarter of the year to P110 million as the impact of the Enhanced Community Quarantine (ECQ) negated the strength seen in January to February.

 In a disclosure to the Philippine Stock Exchange, the firm said first quarter 2020 sales declined 13 percent to P4.3 billion.

The SSI Group started the firstquarter of 2020 on strong footing with January and February sales increasing by 12 percent year-on-year.

“However, the Group’s firstquarter performance was impacted by the COVID 19 health crisis and the declaration of an ECQ, which resulted in the temporary closure of substantially all of the Group’s brick and mortar stores on March 16,” the SSI said.

SSO said its e-commerce sites continued to take orders during the secondhalf of March, with fulfillment of orders and full operations resuming on May 15. It noted significant growth of e-commerce sales as compared to the same period last year.

“The Group faces extraordinary operating conditions as a result of the COVID 19 pandemic. However, we believe that our brand portfolio, our strategic store network and our core customer base will prove to be resilient throughout 2020,” said SSI President Anthony T. Huang.

He added that, “We are also enhancing our customers’ ability to shop from home by continuing to expand our e-commerce business, with the opening of in May, and several more e-commerce openings planned over the rest of the year.”

SSI has also launched The Specialist, a concierge service that allows our customers to shop from home, with personal concierges helping customers select items from our different stores and arranging for payment and delivery of these items.

“During these unprecedented times we will be utilizing the financial gains achieved in 2019 in a prudent manner to address the challenges brought about by COVID-19. We look forward to the gradual recovery of our operations as the country begins to reopen and build on the gains made so far in the struggle against the COVID health crisis,” said Huang.

He added that, “We are encouraged by the performance of our brick and mortar stores, which have seen steady increases in weekly sales since reopening on June 1, while our e-commerce revenues have more than doubled since fulfillment of orders restarted on May 15.”