In its 2025 annual report, the Tantoco family-led company said net income last year fell 47.5 percent to P1.32 billion while inventory levels soared over 20 percent to P12.3 billion, its largest in years, although still within its acceptable ratio.
Revenues rose 2.9 percent to nearly P31 billion by the end of 2025.
SSI’s stock price slipped 2 percent to P2.45 each on Thursday, adding to losses of about 7 percent so far this year and 12.5 percent in the past 12 months.
Slower holiday sales, discounted goods
The company said fourth-quarter sales reflected “generally weak consumer demand,” even after fixing earlier system issues, pointing to a slowdown in the second half of 2025, even as the holiday quarter is typically the strongest.
Fourth-quarter net income fell 45.7 percent to P677 million, underscoring margin pressure as discounting increased and operating costs rose.
Cautious buyers?
Observers previously pointed to a corruption probe involving lawmakers, officials, and contractors, some of whom have been arrested or charged, as a factor weighing on high-end consumer spending.
Net sales rose last year, but the firm resorted to discounts to stimulate spending, resulting in weaker profitability.
“Lower gross margins during [fourth quarter] 2025 reflected additional discounting necessary during a period of weak consumer demand,” SSI said in the report.
PH luxury giant
The group operates 628 stores nationwide, carrying major international names such as Gucci, Prada, Zara, Hermes, and Shake Shack across fashion, beauty, and lifestyle segments.
Growth was driven by footwear, accessories, and luggage, which jumped 15.8 percent, alongside a 34.1 percent surge in smaller categories like personal care and home.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
