Lewis headline earnings per share decline

AFTER deliberations, the Lewis Stores and United Furniture Outlets have been given the green,Picture: Gallo Images

FURNITURE giant Lewis has delivered lower headline earnings per share for the six months ended September.

Headline earnings declined from R173m to R144m with headline earnings a share 15.8% lower at 163.9c. Revenue was 3.2% lower as other revenue declined by 9.8%. This was mainly as a result of lower credit sales and changes to the insurance offering in prior periods which has limited annuity income.

The group’s core lower to middle income customer base continues to be impacted by increasing living costs, high unemployment and limited prospects in the current low growth environment in the country.

Merchandise sales gained momentum in the latter months of the period and increased by 5%, driven by new merchandise ranges and increased promotional activity across the three trading brands. Comparable store sales grew by 7.3%.

-THELMA NGOMA|thelman@thenewage.co.za