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Lewis Group (LEW) investor relations material

Lewis Group H2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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H2 2025 earnings summary29 May, 2025

Executive summary

  • Revenue increased by 13.5% year-over-year to R9.29bn, with merchandise sales up 9.2%.

  • EPS surged 80.7% to 1,457 cents; HEPS rose 60.3% to 1,483 cents per share.

  • Operating profit grew 66.9% to R1.15bn, with operating margin at 22.7%.

  • Total dividend declared increased 60% to 800 cents per share; ROE reached 15.4%.

  • Achieved a milestone year with significant improvements in revenue, profitability, and returns, overcoming a challenging macro environment.

Financial highlights

  • Gross profit margin improved to 43.4%, supported by lower shipping rates and better exchange rates.

  • Credit sales grew 12.1% and now represent 68% of total sales.

  • Debtors book grew 14.5% to R7.96bn; collections from instalment sales up 17.4%.

  • Cash flow from operations increased 34%, reflecting stronger performance.

  • Net asset value per share rose from below R60 in 2018 to over R95 in 2025.

Outlook and guidance

  • Recovery in discretionary spending expected to be challenged by macroeconomic and freight headwinds.

  • Plans to open at least 40 new stores, with 50% in the specialty segment, and continue aggressive store expansion.

  • Sales growth to be driven by market share gains and strong merchandise/marketing strategies.

  • Targeting to maintain ROE above 15% in the short term and expand to 17.5% in the medium term.

  • Operating margin target range for the new year set at 16–20%.

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Frequently asked questions

Lewis Group Limited is a prominent retailer in South Africa, specializing in the sale of furniture, home appliances, electronic goods, and homewares. The company operates through various trading brands including Lewis, Best Home and Electric, Beares, and United Furniture Outlets (UFO), targeting different segments of the market. Lewis, with roughly 500 stores, is the largest furniture chain in the country, catering primarily to the middle to lower-income markets. Beares focuses on customers in higher income brackets, whereas Best Home and Electric provides a range of home appliances and furniture. UFO, targeting the luxury segment, offers high-end furniture options. The company is headquartered in Cape Town, South Africa, and its shares are listed on the Johannesburg Stock Exchange.

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