SSI Group Inc., the country’s largest specialty store retailer, said it allocated P200 million to buy back shares from the open market after its stock price dropped significantly on weak earnings.
SSI said in a disclosure to the stock exchange its board approved the share buyback program as it believed the current shares were undervalued.
“Management believes its shares are currently undervalued and that the buyback program will help to enhance shareholder value. The amount that has been allocated for the buy-back program is P200 million,” SSI Group said.
SSI shares went down by as much as 26 percent in 2016 and 9.8 percent this year.
SSI, which was listed with the Philippine Stock Exchange in 2014, reported a 71-percent decline in net income in 2016 to P232 million from P810 million in 2015 after it closed down 124 stores as a part of its thrust to focus on efficiency.
SSI owns and operates specialty retailing boutiques for a range of international brands including luxury and bridge, casual wear, fast fashion, footwear, luggage and accessories and personal care brands.