Furniture retailer Lewis Group has reported a 41.6% increase in headline earnings to R288.8m for the first half of the 2025 financial year driven by a rise in credit sales, improved operating margins and consumer demand.
The group’s headline earning per share (HEPS) increased by 49.1% to 555c for the six months to end-September.
Total revenue jumped 13.6% to R4.4bn, with merchandise sales contributing R2.4bn, up 8.5% from the previous year. The group’s credit sales rose 16.9%, making up 69.4% of total sales, compared with 64.4% in the same period last year, the group said on Thursday.
The operating profit surged by 54.1% to R477m, supported by a 40.9% gross profit margin and tight cost control, which kept operating cost growth at 8.8%. The operating margin increased from 14.2% to 20.2%.
Reflecting the growth, Lewis’ board has declared a 50% increase in interim dividend to 300c per share.
The group said it had increased inventory by 17.8% to meet festive season and Black Friday demand.
Lower inflation, interest rate cuts and reduced fuel costs have boosted consumer confidence, but Lewis expects the discretionary spending recovery to remain slow.
The group said it planned to meet high credit demand by growing its debtors’ book, expanding store locations and driving sales through targeted marketing, new merchandise and festive season promotions.
“Management also aims to capitalise on opportunities to acquire well-located trading space to expand the store base. Appealing Black Friday and festive season promotions are planned across all brands, supported by new merchandise ranges, favourable stock availability and targeted marketing campaigns,” it said.
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