SM Store expects fashion apparel to lead revenue in second half

SM INVESTMENTS Corp. expects SM Store’s second-half revenue growth to be driven by its fashion apparel, coupled with strong consumer sentiment, a company official said.

“[First half] revenue growth was driven by strong consumer sentiment across all categories, particularly in fashion, footwear and apparel, as consumers returned to malls and shopped again,” Timothy said. Mr. Daniels, SM Investments consultant for investor relations and sustainability, in a Viber message.

“In [the second half]we see the same trends continuing with strong consumer sentiment and our outlook remains bullish,” Daniels added.

In a press release, SM Store said it had seen a resurgence in its fashion department as the easing of mobility restrictions drew more people to stores and malls.

He added that demand was boosted by the resumption of face-to-face classes in schools and the return to setting up on-site offices, which reduced the company’s sales to 96% of pre-levels. the pandemic.

Daniels said 96% of pre-pandemic revenue relates to the performance of the entire SM retail business, which includes department stores, affiliate retailers and food retail.

Meanwhile, SM Store said style trends have shifted to comfortable loungewear during the pandemic.

The company launched “Athleisure”, which reflects the more active lifestyle of its customers.

SM Store said that as people emerged from previous shutdowns, customers needed wardrobe upgrades as face-to-face classes and back-to-office setup began.

“When the school reopened, there was also an increase in demand for school essentials – from shirts, uniforms, socks, shoes to bags and stationery supplies,” SM said. Store.

The company also developed a “Tee bar”, which featured T-shirts with “young and whimsical designs”.

It also introduced more categories of gadgets, from headphones to gaming keyboards, which aim to cater to the new generation of games and technologies.

Daniels said SM Store’s revenue and net profit rose 56% and 240%, respectively, in the first half.

SM Retail reported an 18% increase in first-half revenue to 163.7 billion pesos and a 91% jump in net profit to 7 billion pesos, which the company attributed to trends and the resurgence of purchases.

Meanwhile, SM Investments’ attributable net profit rose 27% to 25.51 billion pesos in the first half, while its revenue rose 23.3% to 238.48 billion pesos. .

In trading on Friday, shares of SM Investments rose 21P or 2.47% to 871P each. Justine Irish D. Tabile

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