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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 2017, 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

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