South African furniture retailer Lewis said on Monday first-half revenue rose 11,2% to R1,718-billion, with merchandise sales 7,5% higher.
Lewis said headline earnings per share for the period to end-September rose 11% to 308,5 cents.
”Trading conditions in the medium term are expected to be tough, with food and transport inflation affecting the group’s target market. However, public infrastructural spend, overall job creation and real wage increases are encouraging,” Lewis said in a statement.
The retailer said debtor costs were an unchanged 3% of net debtors.
Lewis said operational, merchandise strategies would continue to produce satisfactory results.
The retailer said its core Lewis chain — which contributes 82% of group sales — recorded 10% growth in revenue with merchandise sales 6% firmer.
Lewis said its Best Electric unit — which contributes 11% to group sales — increased revenue by 17% and merchandise sales by 11%.
The retailer said its Lifestyle Living division — a 7% contributor to group sales — increased revenue by 18%, with merchandise sales 12% stronger.
Lewis said 24 new stores had opened since October last year, with a further eleven to be opened in the period October to December 2007, ”… bringing the total of new stores for the current financial year to 22.”
At 7.35am GMT, Lewis shares were unchanged, while the JSE general retailers index was 0,75% weaker.
Lewis said that there has been no noticeable deterioration in the quality of customers applying for credit because of the National Credit Act (NCA).
Lewis said that the calculation it used to grant credit over the last three years has almost exactly met the requirements of the NCA.
The NCA was introduced on June 1 this year, and requires finance charges and insurance to be charged on a monthly basis. – Reuters and I-Net Bridge