New credit rule for Lewis furniture store

Johannesburg – Lewis Furniture Store’s revenue was down by 3.2% to R2.7 billion due to their low prices credit sales and the changes to its insurance.

This information was taken from a report that was released by the group’s interim for the 6 months period that ended on the 30th of September 2017.

Lewis’ goods sales were up by 5% to R1.3 billion, their credit sales amounted to 68.8%. Reports show that their insurance revenue was down from R420.3 million in previously it was R356.4 million.

The report also shows that Lewis’ operating cost amounted to R1.7 billion, down to R1.73 it was reported for the same period the previous year.

Their operating profit amounted to R191.8 million down from R275 million. Their net profit was down 17.7% to R143.4 million.

The report read, “The group’s core lower to middle income customer base continues to be impacted by increasing living costs, high unemployment and limited prospects in the current low growth environment in the country.”

The National Credit Regulator (NCR) restricted the Lewis’ credit sales.

The report also states that, “The business is considered to be scalable, offering the opportunity to extend the store footprint across South Africa and into neighbouring countries and will benefit from the group’s buying power.”

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