WILCON Depot Inc. saw net income drop 6.1 percent in the first nine months of 2026 as higher operating expenses and weaker third-quarter sales growth weighed on earnings despite continued store network expansion.
The home improvement retailer reported net income of P1.75 billion for the January to September period, down from P1.87 billion a year earlier.
Net sales in the nine months rose 7.9 percent to P28.43 billion from P26.34 billion, supported by same-store sales growth (SSSG) of 3.6 percent and contributions from stores opened within the past year.
The company opened seven new stores in the first nine months, bringing its total network to 111 branches as of September.
Gross profit in the nine-month period grew 5.1 percent to P10.59 billion, while operating expenses increased 8.3 percent to P8.60 billion.
Earnings, however, weakened in the third quarter, with net income falling 22.1 percent year on year to P548 million from P703 million, even as net sales increased 2.4 percent to P9.45 billion, with the sales growth coming entirely from new stores.
Wilcon President and CEO Lorraine Belo-Cincochan attributed the lower earnings to heavy rains in August and faster inflation in September, which dampened consumer spending on home improvement projects.
“Macroeconomic and weather-related headwinds halted our earnings growth trajectory in Q3. The trend reversal was driven by two key factors: heavy August rains and surging inflation,” Belo-Cincochan said.
She said persistent rains kept customers from starting home improvement projects, resulting in lower store foot traffic and a sharp decline in sales during August.
Elevated oil prices and a weakening peso, which pushed September inflation above 7 percent, also limited the expected recovery in consumer demand.
“We expected a sharp turnaround in September, but prevailing macroeconomic challenges limited consumer spending to repairs and basic, essential home improvement projects,” Belo-Cincochan said.
Same-store sales declined 1.9 percent in the third quarter. Wilcon’s depot format, which accounted for 96 percent of quarterly sale, recorded a 1.7-percent decline in same-store sales, while its smaller Do It Wilcon branches saw same-store sales grow three percent.
Gross profit increased 1.5 percent to P3.52 billion in the third quarter, but gross profit margin narrowed to 37.2 percent, partly due to a lower contribution from exclusive and in-house brands.
Meanwhile, operating expenses, including lease-related interest, rose nine percent to P2.89 billion.
Belo-Cincochan said Wilcon would focus on improving product availability and service speed to convert more store visitors into buyers and sustain positive same-store sales growth for the full year.
“To finish the year with positive SSSG, we will continue optimizing our operations to focus particularly on product availability and service speed,” she said.
The company’s shares dropped P0.14, or 2.67 percent, to close at P5.10 each on Monday.
