Lewis full-year profit drops on weak spending and tougher regulations
FURNITURE retailer Lewis on Wednesday reported a dip in its full-year profit, affected by weak consumer spending and stringent regulatory environment.The small-cap company, which last year suffered reputational damage on accusations of reckless lending by the National Credit Regulator (NCR), saw its headline earnings per share drop 26.5% to R6.22 in the year to March from a year ago.Revenue was up 2.2% to R5.78bn, but credit sales dropped 4.5%.Credit sales in Beares account for 50% of the brand's total sales while in Lewis and Best Home and Electric 66% of total sales are on credit.The company said the introduction of the NCR’s affordability assessment regulations affected its sales.These regulations require customers to provide their three latest pay advices or bank statements as part of the credit application process."This is proving a major challenge for many consumers in the group's lower to middle income target market who are self-employed," the company said in a statement.The ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.