TANTOCO-LED SSI Group, Inc. reported a 47.5% decline in its 2025 attributable net income to P1.32 billion from P2.51 billion a yr earlier, weighed down by operational disruptions, weaker consumer demand, and better expenses.
Revenue growth was modest through the period, with net sales rising 2.9% to P30.8 billion from P29.9 billion in 2024, the corporate said in its annual report released on Thursday.
The corporate said operational issues related to its systems transition affected performance for a lot of the yr.
“The group’s sales performance through the first nine months of the yr was negatively affected by implementation issues related to the Group’s transition to SAP and ETP Enterprise Resource Planning Systems. These issues caused delays in warehouse-to-store replenishments,” SSI said. SAP and ETP Enterprise Resource Planning systems are integrated software platforms used to administer core business processes corresponding to inventory, logistics, and store operations.
Despite resolving these issues later within the yr, demand remained soft.
“And while these issues were resolved by 4Q (fourth quarter) 2025, sales through the 4Q reflected generally weak consumer demand through the period,” it said.
Margins also got here under pressure on account of discounting.
“Lower gross margins during 4Q 2025 reflected additional discounting mandatory during a period of weak consumer demand,” the corporate said.
At the identical time, operating expenses increased.
“Operating expenses for the yr ended Dec. 31, 2025 amounted to P12.0 billion, a rise of 14.0% as in comparison with 2024,” SSI said.
Higher costs were driven by increased depreciation linked to store renovations and recent store openings, in addition to higher personnel, rental, and other operating expenses, in keeping with the report.
Because of this, operating income fell to P1.87 billion from P3.23 billion in 2024, while earnings before interest, taxes, depreciation, and amortization (EBITDA) declined 24.8% to P4 billion.
For the fourth quarter, net income dropped 45.7% to P677 million from P1.2 billion a yr earlier.
SSI said economic conditions and consumer spending trends remain key risks to its performance.
“A worsening of the economy may negatively affect consumer purchases from SSI’s brands and will have a cloth antagonistic effect on its business, financial condition and operating results,” it said.
The corporate also noted seasonal patterns in its business.
“Sales generally decelerate in the primary and third quarters of the yr, and begin to select up within the second and last quarters…” it said.
SSI Group, Inc. is a specialty retailer that manages and operates international lifestyle brands across categories corresponding to luxury and bridge, casual wear, fast fashion, footwear, accessories, and luggage through its nationwide store network.
The corporate ended 2025 with 628 stores and 102 brands nationwide. Within the fourth quarter, SSI opened 43 stores and closed 21.
On Thursday, shares of SSI Group rose 1.63% to P2.49 apiece. — Alexandria Grace C. Magno