The home-improvement retailer generates more cash by cutting inventory, as shrinking margins and growing lease obligations cloud its expansion drive **MANILA—**Wilcon Depot Inc. entered 2026 selling more home-improvement products and carrying substantially less inventory. The combination produced a surge in cash flow—but barely moved the company’s bottom line. The Philippine retailer reported net income of ₱1.20 billion for the six months ended June 30 , up 3.5% from ₱1.16 billion a year earlier. Revenue climbed nearly 11% to ₱18.98 billion , highlighting a widening gap between Wilcon’s sales growth and its ability to turn those sales into profit. That gap reflects a central challenge facing the company: Customers are buying more, but the mix of what they are buying has become less profitable. Wilcon’s gross margin fell to 37.3% from 38.7% a year earlier. The contribution of higher-margin in-house and exclusive brands declined to 50.5% of sales from 52.3%, partly offsettin...