Lewis FY HEPS slip 4.2% to R8.83

Lewis Group (LEW) on Wednesday, 27 May 2015, reported a 4.2% drop in full-year headline earnings per share (HEPS) to R8.83‚ although it still managed to beat market estimates.

The furniture retailer realised an 8% rise in revenue to R5.7bn in the year to March‚ with merchandise sales growing 7.6%‚ boosted in part by higher levels of promotional activity.

Excluding Beares‚ which it acquired from Ellerines last year‚ merchandise sales were up only 4.4%‚ while net profit slipped 0.3% to R839.4m.

Credit sales as a percentage of total sales declined from 72% in 2014 to 69% in 2015 due mainly to the incorporation of the Beares chain‚ which has a higher cash sales component.

Lewis said its performance had improved in the second half of the year‚ but trading conditions remained tough‚ pointing to financial pressure in its lower-to-middle income target market.

The company kept its final dividend per share at 302c.

Source: BDpro via I-Net Bridge