Tantoco-led retailer SSI Group, Inc. reported a 37.8 percent drop in net income for the first half of 2025 to ₱451.8 million from ₱726.3 million in the same period last year due to weaker consumer demand for mid to upscale goods.

The company generated sales of ₱13.4 billion in January to June, an increase of 1.6 percent as compared to ₱13.2 billion in the same period in 2024. For the second quarter alone, sales decreased by 1.6 percent to ₱6.6 billion.

Sales in the second quarter were negatively affected by implementation issues related to the Group’s switch to an SAP and ETP Enterprise Resource Planning Systems.

“The Group is working to resolve issues that have caused delays in warehouse-to-store replenishments. These delays have impacted top-line growth, as stores during the second quarter had inventory levels below normal,” SSI said.

It noted that, “Consumer demand in general was muted during the second quarter as consumers seem to be holding off on discretionary spending.”

“Weak demand coupled with SAP implementation issues made the second quarter a challenging quarter for the Group, however, we remain confident that our brand portfolio and store network continue to be the retail outlets of choice for mid- to high-end discretionary spending in the Philippines,” SSI added.

Abacus said SSI’s performance was “One of the negative surprises so far among the non-index names” and noted that there is no indication whether inventory issues could spill over to the third quarter.

It noted, though, that “recent developments have not been favorable for SSI and even the market in general. This is likely going to negatively impact the company's outlook.”

During the first half of 2025, SSI said performance of the Group’s different categories varied, with Footwear, accessories, and luggage having a 24.9 percent increase, followed by the Others category (personal care, food, and outlets) and Fast fashion with increases of 6.6 percent and 0.2 percent, respectively.

Movement in sales was also impacted by the decrease in revenue from Casual wear category of 3.4 percent, and Luxury and bridge of 1.4 percent.

The Group’s e-commerce business generated sales of ₱969.3 million, which accounted for 7.2 percent of sales during the half of the year.

At the end of June 2025, the Group’s store network included 601 stores nationwide which cover a total of approximately 125,815 square meters. During the second quarter, the Group opened 16 stores covering 6,134 square meters and closed two stores with total area of 168 square meters.

The Group booked rental income of ₱48.1 million, an increase of 5.0 percent over the same period last year. Rental income relates to the leasing out of certain store spaces at Central Square as well as income derived from parking spaces at Central Square.