Lewis posts lower interim earnings

10 Nov 2008

Furniture retailer Lewis has reported a 0.9% decline to 305.7 cents in headline earnings per share for the interim period ended September compared with the same time a year ago.

An interim dividend of 144 cents per share was declared - the same amount as last year. Revenue rose 5% to R1.8 billion, but sales fell 0.7% to R890.3 million and operating profit fell 2.7% to R411 million.

The group described the trading environment as "extremely difficult" due to high interest rates and inflation.

"Whilst trading is expected to remain difficult, the upcoming peak trading season will be supported by strong promotions and inventory to maximise sales opportunities," the group said.

Lewis, with retail chains such as Best Electric, said its core retail business of furniture and appliances (80% of total sales) grew by 2%. The sound and vision section (20% of total sales), which is a consumer discretionary spend, declined by 11%.

Lewis division grew revenue by 4.8% and Best Electric's revenue increased by 11.6%, while Lifestyle Living's revenue declined by 10.1%.

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