Listed home improvement and construction supplies retailer Wilcon Depot Inc. posted a 23 percent drop in first-half net income to P1.163 billion, as sluggish same-store sales and higher operating costs cut into earnings.

Despite the slide, President and CEO Lorraine Belo-Cincochan said Tuesday that the company expects a second-half rebound, pointing to early gains in sales and tighter cost management.

“We are already seeing an upward trend in our sales, and our same-store sales growth is already in positive territory in June. It was mainly during the long holidays in April and May that foot traffic was affected, as expected,” Belo-Cincochan said.

“We’ve also implemented measures on the cost and expenses fronts. We re-configured some of our processes and adjusted employed resources such as manpower and equipment, to minimize the growth or even reduce certain expense items,” she added. 

From January to June, Wilcon’s revenues clocked in at P17.109 billion, down 0.4 percent or P75 million year-on-year, mainly due to slower foot traffic during the April holidays and May elections. Comparable sales dropped 4.9 percent, dragged by lower ticket sizes.

Sales from depot-format stores were flat at P16.485 billion, while sales from new depots contributed a 4.5 percent lift. However, comparable sales declined by 4.4 percent.

Smaller-format Do-It-Wilcon stores posted P540 million in sales, up 10.8 percent year-on-year, with same-store sales growing 6.6 percent. Project sales to institutional clients dropped sharply by 62.9 percent to P84 million due to fewer projects by major developers

Gross profit fell 3.3 percent to P6.613 billion, with margins narrowing to 38.7 percent from 39.8 percent, largely due to changes in product mix and pricing. Exclusive and in-house brands made up 52.3 percent of total sales.

Operating expenses rose 4.1 percent to P5.286 billion, driven by higher depreciation, utilities, and salaries for new stores, partly offset by lower trucking and rent costs.

Operating other income fell 20.4 percent to P194 million due to reduced supplier support following completed promotions, while non-operating net other income rose to P19 million, boosted by the reversal of a one-time fire-related charge recognized last year.

During the period, the company opened three new stores and reopened its Baliwag, Bulacan branch, which had been damaged by fire in 2024, bringing its total store count to 103.