Advertise with fastmoving.co.za
 
 

Lewis said in its trading update it expected to report on May 24 that its basic earnings per share (EPS) for the year to end-March would be in the range of 58% and 66% lower than the previous year’s R10.83.
Lewis said in its trading update it expected to report on May 24 that its basic earnings per share (EPS) for the year to end-March would be in the range of 58% and 66% lower than the previous year’s R10.83.

Lewis’s shares rise despite profit warning

RETAILER NEWS

By Robert Laing - May 18th, 11:09

Furniture retailer Lewis warned shareholders on Wednesday that its earnings were expected to fall by as much as 66% — which appears to have been less severe than investors expected because its share price jumped 3% on Thursday morning. 

Lewis said in its trading update it expected to report on May 24 that its basic earnings per share (EPS) for the year to end-March would be in the range of 58% and 66% lower than the previous year’s R10.83.

Headline earnings per share (HEPS) were expected to drop by between 30% and 40% from the previous year’s R6.22.

Lewis said the drop in earning was partly due to its 2016 results benefiting from a one-off windfall of R496m from selling an investment portfolio held in its subsidiary, Monarch Insurance Company.

Merchandise sales in its 2017 financial year fell 2.2%, with like-for-like merchandise sales down 9.3%, the trading statement said.

Its overall revenue was down 3.3%.

"The group’s gross profit margin continued to expand in line with management’s expectations and improved to 41.6% compared to 38% in the previous year," Lewis said.

"Debtor costs for the year increased by 6% reflecting an improvement from the 17% growth reported at the 2016 year-end."
© BusinessLIVE MMXVII 

Read more about: sales | retail | lewis

Related News

Popping up is good for business
23/05/2017 - 15:39
There’s no better way to do market research than by putting yourself and your product out there on the street. If you sell like crazy, you can safely assume that people want what you have to offer. That’s how simple it should be, especially in these times of ‘lean business models’ as the necessary approach to starting up a business.

Alibaba Group reports strong growth in eCommerce
23/05/2017 - 14:30
The Alibaba Group reported strong eCommerce growth for the quarter ending March 31. Revenue for the quarter was $5.6 billion, an increase of 60% year-over-year, the highest growth rate since the company went public. Overall revenue growth was 56%.

Acquisitive Rhodes escapes drought woes
23/05/2017 - 12:29
Acquisitive food producer Rhodes appears to have survived the drought better than its larger rivals, reporting both turnover and profit growth for the first half of its financial year.

Verimark more than doubles its full-year profit
23/05/2017 - 11:43
South Africa’s market leading direct retail group, Verimark, today announced that despite the tough trading environment in the country, it delivered substantially improved results for the year ended 28 February 2017. A significantly higher dividend has been declared amounting to 11.3 cents per share, compared to 3.7 cents last year. The dividend yield at the year-end share price equates to 18,5%.

Walmart sees strong growth in U.S. eCommerce
22/05/2017 - 14:21
As its Jet.com acquisition continues to pay out, Walmart is seeing hyper growth in eCommerce, with U.S. online sales up 63% in the first quarter. On the physical side of things, Walmart’s store traffic and same-store sales were both up in an extremely challenging retail environment, rising 1.5% and 1.4% respectively.