Wilcon Depot Inc. is asking investors to believe in two things at once: that the Philippine home-improvement retailer can keep expanding its store network, and that its thinning margins are temporary rather than structural. The company’s first-quarter numbers gave both bulls and skeptics something to hold on to. Net sales climbed 9.1% to ₱9.17 billion , helped by new stores and a 4.7% rise in same-store comparable sales . Net income also rose, but by a slower 4.9% to ₱563 million , underscoring the main tension in Wilcon’s latest report: revenue growth is still there, but it is no longer flowing cleanly to the bottom line. The biggest warning sign was gross margin. Wilcon’s gross profit margin fell by about 180 basis points to 37.0% , from 38.8% a year earlier, as the company cited an unfavorable sales mix and a lower contribution from higher-margin exclusive and in-house brands. Those brands accounted for 51.7% of net sales , down from 52.2% in the year-earlier quarter. F...