Wilcon Depot, Inc. reported a 22.1% decline in third-quarter net income to P548.03 million, down from P703.37 million in the same period last year, as higher expenses and weaker same-store sales weighed on earnings despite continued revenue growth.

"Macroeconomic and weather-related headwinds halted our earnings growth trajectory in the third quarter," Wilcon Depot President and Chief Executive Officer Lorraine Belo-Cincochan said in a statement issued on Monday.

For the three months ended September, the home improvement retailer recorded gross revenues of P9.55 billion, up 2% from P9.36 billion a year earlier. Gross expenses rose faster, climbing 4.5% to P8.61 billion from P8.24 billion and outpacing the top-line gain — a spread that meant the quarter's revenue growth fell short of covering its faster-rising costs. Net sales increased 2.4% to P9.45 billion, supported by contributions from newly opened stores, while same-store sales declined 1.9%. Same-store sales track performance at stores open long enough for a like-for-like year-on-year comparison, stripping out the lift from new openings to show how demand is holding up across the existing network.

Ms. Belo-Cincochan attributed much of the quarterly weakness to adverse weather. "Persistent downpours in August kept customers from starting home improvement projects, driving year-on-year foot traffic decline and steep net sales drop during the month," she said. The company also cited elevated oil prices and a weaker peso as factors weighing on consumer demand. For a home improvement retailer, that description points to shoppers concentrating on repairs and essential items while deferring larger discretionary projects — the same pattern management later flagged for September.

For the first nine months of 2026, net income fell 6.1% to P1.75 billion from P1.87 billion in the comparable period last year. Gross revenues for the January-to-September stretch increased 7.7% to P28.72 billion from P26.66 billion, while gross expenses rose 9.3% to P25.85 billion from P23.66 billion. Net sales advanced 7.9% to P28.43 billion, supported by newly opened stores and a 3.6% increase in same-store sales. The nine-month figures put the quarter in context: a 3.6% year-to-date same-store sales gain alongside the third quarter's 1.9% decline points to firmer existing-store demand in the first half, with new openings carrying much of the top-line growth.

Wilcon opened seven stores during the nine-month period, bringing its nationwide network to 111 stores as of end-September.

"We expected a sharp turnaround in September, but prevailing macroeconomic challenges limited consumer spending to repairs and basic, essential home improvement projects. Despite this headwinds-driven dip, year-to-date SSSG (same-store sales growth) remains positive, keeping us on track to deliver positive SSSG for the full year 2026," Ms. Belo-Cincochan said. That full-year target now rests on the final quarter: whether same-store sales stay positive through year-end, whether the gap between revenue and expense growth narrows, and whether the 111-store network keeps expanding are the markers to watch when full-year results are reported.

At the local bourse on Monday, shares in Wilcon fell 14 centavos, or 2.67%, to close at P5.10 apiece.

— Ashley Erika O. Jose, BusinessWorld

Source: BusinessWorld