MANILA, Philippines — The SSI Group Inc., a major Philippine retailer of luxury brands, reported a sharp 47.5% decline in net income for 2025, falling to P1.32 billion. The company, led by the Tantoco family and known for distributing high-end names like Hermes, Bottega Veneta, Cartier, Givenchy, and Burberry, attributed the significant drop to sluggish consumer demand and rising operational costs.
In the fourth quarter alone, net income tumbled 45.7% to P677 million from P1.2 billion in the same period a year earlier, according to the company's annual report.
While gross profit saw a modest increase to P13.9 billion, the gross profit margin contracted to 45.1%. This squeeze was driven by increased discounting strategies deployed to stimulate sales in a challenging market where demand for luxury goods has softened.
Operating expenses surged 14% year-on-year to P12 billion. This increase was fueled by higher depreciation, personnel, and rental costs associated with the group's ongoing store expansion efforts. Consequently, operating income fell sharply to P1.9 billion from P3.2 billion.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) also declined by 24.8% to P4 billion, reflecting the broader pressure on profitability.
Despite the earnings downturn, SSI's total assets grew to P29.5 billion, supported by increases in inventory and receivables. The company noted that its overall financial position remains stable, though the combination of elevated costs and tepid consumer spending significantly impacted its bottom line throughout the fiscal year.