Lewis group lifts headline earnings 18% as revenue passes R10 billion mark

28 May 2026

Cape Town - Lewis Group continued its strong growth momentum in the year to March 2026 as headline earnings increased by 18.4% to R909.4 million, driven by strong growth in credit sales and other revenue, expanding margins and the good quality of the debtors’ portfolio.

The listed furniture retail group increased its total dividend by 12.1% to 897 cents per share and the return on equity strengthened further from 15.4% to 16.2%.

CEO Johan Enslin said while discretionary consumer spending remained constrained over the past year, “the group continued to invest for longer-term growth by accelerating the expansion of its store footprint and growing the debtors’ book”.

Merchandise sales increased by 7.3% to R5.5 billion. Credit sales increased by 9.6% and accounted for 69.4% of total merchandise sales compared to 68.0% a year earlier. Sales in the stores outside South Africa, which represent 15% of the store base, increased by 6.9% and accounted for 18.2% of group merchandise sales.

The group opened a net 58 new stores, the highest number of store openings in a single year, and increased its store base to 976. This included 36 new outlets for the specialist bedding chain, Real Beds, which expanded its footprint to 52 stores.
Enslin said the group plans to open 40 new stores in the 2027 financial year, including 25 traditional retail stores and 15 speciality bedding stores.
Total revenue passed the R10 billion mark for the first time, increasing by 11.1% to R10.3 billion.

The gross profit margin strengthened by 30 basis points to 43.7% and the operating margin expanded by 110 basis points to 23.8%, with operating profit increasing by 12.8% to R1.3 billion.  

The debtors’ book grew by 15.2% to R9.2 billion as the group’s credit customer base  increased by 11% through effective customer acquisition and retention strategies. The quality of the debtors’ portfolio remains sound, with satisfactory paying customers at 82.6% (2025: 83.5%) and the collection rate at 78.1% (2025: 78.9%).

Commenting on the outlook for the new financial year, Enslin said consumer spending will be impacted by inflationary pressures owing to higher fuel and transport costs resulting from the record fuel prices amid the ongoing conflict in the Middle East.

“Despite the uncertain economic environment, the group remains well positioned to gain market share. We will continue to focus on affordability, maintaining good stock availability and introducing new exclusive merchandise ranges to support future growth,” he added.

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