Lewis suffers as conditions deteriorate

LEWIS Group said trading conditions continued to deteriorate in the year to the end of March as a result of affordability assessment regulations, high levels of unemployment and the drought.

Lewis chief executive Johan Enslin earlier said the regulations were restricting access to credit and, consequently, the group’s credit sales growth.

The retailer said merchandise sales slowed in the second half of the year, ending 2% lower after increasing 1% in the first half of the year. Revenue, at R5.6 billion, was 3.3% down on the previous year. Lewis said its operating margin contracted to 10.1%.

Lewis said expenses were impacted by the integration of the stores acquired outside the country, general compliance costs, including the compliance call centre at head office, and upgrades to the point-of-sale system in stores.

Lewis directors declared a final dividend of 100 cents per share, bringing the total dividend for the year to 200 cents per share, compared to 517 cents in 2016. – ANA