TRADING UPDATE
Lewis shares unaffected by quarterly revenue fall
The Lewis share price held up reasonably well on Wednesday despite the release of yet another grim trading update from a major retail group. But as earnings for financial 2017 now look on target to be back at the sort of levels last seen in 2005, the share price is set to remain under pressure for the foreseeable future. Revenue for the third quarter to December 2016 declined 7.5% with merchandise sales 5.6% lower. For the nine months to end-December revenue was down 4% and merchandise sales 2% lower.Management reported comparatively good news on the debtors’ front, with collection of the debtors’ book remaining stable during the three months. Trading conditions for the nine months were described as extremely challenging. "Low economic growth, declining consumer confidence, constrained employment and the continuing impact of the drought in the agricultural sector" were the challenges identified by management. In addition, credit sales continued to be affected by the affordability as...
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