Revenge spending? Luxury retailer SSI says sales, net income exceed pre-pandemic level

ABS-CBN News

Posted at Aug 16 2022 11:25 AM

MANILA - Listed luxury retailer SSI Group Inc on Tuesday said its sales and net income have shown significant rebound exceeding its pre-pandemic levels as the easing of restrictions boost consumer confidence.

Sales reached P5.6 billion in the second quarter which is 91 percent higher than last year and 13 percent more than the sales in the same period in 2019, the company said in a disclosure to the stock exchange.

Net income in the second quarter grew 671 percent to P424 million, it said.

Total first half net income reached P491 million, which is 383 higher compared to the same period last year and 42 percent higher than the first half of 2019, SSI Group said.

The first half's strong performance was driven by "significant increases" in Q2 sales, gross profit margins and net income, the company said.

Sales from its e-commerce sites such as trunc.ph and the individual sites of its brands, also grew in the second quarter.

"Strong consumer demand during the period allowed the Group to capitalize on strategies put in place in order to ensure responsiveness to changing market conditions, and to convert improving consumer confidence and mobility into sales and profitability," SSI president Anthony Huang said.

"The Group enters the second half of 2022 well equipped to deal with possible headwinds in the form of higher inflation and a weaker peso and we continue to be confident that SSI has put in place the tools to deal with changing market conditions," he added.

Several banks have also said revenge spending and consumer confidence have driven growth of their credit card activities and loans. 

Retailer groups also noted that Filipinos who have money to spare are spending for luxury goods.

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