Lewis Group (LEW) H1 2026 earnings summary

Executive summary

• Revenue increased 11.3% year-over-year, with merchandise sales up 6.7% and other revenue up 16.7%.

• Operating profit rose 21.4%, with margin expanding by 250bps to 20.7%.

• Interim dividend increased by 12.3% to 337 cents per share, maintaining a strong payout history.

• Headline earnings per share increased 16.8% to 648 cents; EPS grew 13.8% to 619 cents.

• Store base expanded to 958, with 40 new stores opened, including 28 Real Beds outlets.

Financial highlights

• Gross profit margin at 41.0%, in the middle of the target range.

• Debtors book grew 14.0% to R8.53bn, with collections up 14.1% and satisfactory paid accounts at 82.7%.

• Net profit attributable to shareholders was R320 million, up from R283 million.

• Dividend payout ratio consistently above 55%, with a five-year average yield of 10.5%.

• Operating costs increased 10.0% and debtor costs rose 12.9%.

Outlook and guidance

• Management plans to open 15–20 additional stores in H2, mainly in specialist bedding brands.

• Expect to maintain a 41% gross profit margin and operating margin within target range in the second half.

• Discretionary spending expected to remain constrained; focus remains on credit sales and market share gains.

• Marketing campaigns and new merchandise ranges to support festive sales.

• Management aims to exceed last year's strong second-half profit base.