Lewis sells more furniture, but more of it is on credit
The proportion of furniture Lewis sold on credit in the first half of is financial year widened to 68.8% from 63.4% in the matching period, helping it grow merchandise sales 5% to R1.3bn.Merchandise sales contributed about half of Lewis’s overall revenue. A quarter of its total revenue came from finance charges and initiation fees, which declined 7.3% to R678.5m, Lewis reported on Monday morning.Insurance revenue fell 15% to R356.4m and what the group calls "ancillary services" revenue fell 9% to R328.9m for the six months to end-September from the matching period in 2016.The declines in the fees Lewis adds to the price for customers who buy their furniture on credit saw the group’s overall interim revenue decline 3% to R2.66bn.Lewis maintained its interim dividend at R1 despite its after-tax profit falling 18% to R143.4mHeadline earnings per share (HEPS) fell 16% to 163.9c, midway between Lewis’s guidance of a 12%-18% decline.The group increased its marketing expenditure by 9% to R...
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.