Philippines luxury retailer SSI Group saw first-quarter earnings fall sharply as consumers prioritised essentials over luxury spending.
What happened
The company’s net income has declined by half at 58.5 per cent to US$2.4 million (PHP$152.9 million) for the quarter, which ended March 31, even as revenue rose 11.4 per cent to $123.8 million.
Why it matters
SSI said a more promotional environment weighed on profitability, with merchandise gross margin narrowing to 42.6 per cent from 44.6 per cent a year earlier as shoppers became increasingly price-conscious amid inflation and higher living costs.
Operating expenses also rose 15.8 per cent to $48.3 million due to inflationary pressures and store network expansion, pushing EBITDA (earnings before interest, taxes, appreciation, depreciation, and amortisation) down 18.4 per cent to $12.3 million.
Consumer demand was strongest in essential and lifestyle categories during the quarter, as SSI’s ‘others’ segment, which includes personal care, food and home products, posted a 48.5 per cent increase in sales, while footwear, accessories and luggage rose 32.7 per cent.
This news brief is based on reporting published by Inside Retail Asia on 2026-05-19. The original report is linked below.
Inside Retail Asia
https://insideretail.asia/2026/05/19/ssi-groups-profit-sinks-as-shoppers-cut-back-on-luxury-spending/This independent news brief is based on the public source identified above. It is an original summary or translation, not a reproduction of the source article. Rights in source text, research, trademarks and images remain with their respective owners; images are used under the licence or permission identified in the credit. Rights holders may contact rights@goodproductasia.com with evidence of ownership. Verified concerns will be corrected, replaced or removed promptly. This report is not investment, legal, medical or purchasing advice.
