Lewis sales continue to increase

14 November, 2006 at 3:38 pm | Posted in Companies | Leave a comment

The country’s third-biggest furniture retailer, Lewis Group, said it had not seen the slowing sales growth experienced by bigger rivals JD Group and Ellerine Holdings.
Lewis chief executive Alan Smart said yesterday that the company had experienced no slowdown in the six months to September and that this positive trend had continued through October.

Last week the country’s biggest furniture and appliance retailer, the JD Group, as well as Ellerine, said sales growth had slowed in the six months to August.

The JD Group and Ellerine said they had expected this trend to continue, following record levels of consumer debt and rising interest rates since May.

But Smart said although he expected growth in the overall economy to slow, he believed middle market consumer spending was still buoyant.

Lewis reported half-year revenue to September up 16 percent to R1.55 billion. By way of comparison, JD Group’s revenue for the full year was up 20 percent to R11.94 billion and Ellerine lifted sales by 79 percent to R7.58 billion, but the figure was boosted by the significant Relyant Group acquisition.

Lewis said “normalised” net profit for the half year to September was up by 18.5 percent to R261 million.

The company stripped out an accounting charge of R58 million as a result of a share donation to staff in the previous period to arrive at the normalised figure.

(BusRep)

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