SSI Group profit plunged by almost 60 per cent to Php241 million in the first half of 2016 from Php586 million in the previous year.

The country’s largest specialty store retailer says the decline reflects narrower gross profit margins.

Revenue growth during the first half of the year, however, outpaced the increase in the group’s retail footprint. Its strong brand portfolio, strong same-store sales growth and resilient consumer demand pushed revenues to Php8.6 billion for the period ended June 30, a year-on-year increase of 8.5 per cent.

“Over the second half of the year we will continue to focus on top line growth and expect to begin realizing additional benefits from our store rationalization program. We likewise expect our gross margins during the second half of the year to stabilize as against the year ago period,” said Anthony Huang, SSI Group president.

As of end-June 2016, the group operated 737 specialty stores covering more than 143,000 sqm. This compared with 771 stores over more than 142,000 sqm at the end of June 2015.

As of end of June 2016 the group’s brand portfolio comprised 117 brands.