Lewis lifts revenue on resilient credit demand

Lewis Group reported an 11.1% increase in total revenue in the nine months to December 2025, supported by a 7.1% rise in merchandise sales and a 9.1% increase in credit sales, which accounted for 69.4% of total turnover.

In a trading update published on Sens on Tuesday, the furniture and appliance retailer noted merchandise sales in the third quarter to December climbed 7.8%, supported by strong Black Friday trading across all brands, following growth of 8.9% and 4.6% in the first and second quarters, respectively.

Read: Lewis Group delivers 67% profit surge

Lewis shares traded at R96.78 at around 10am, up 2.96% from the previous day.

Comparable store sales rose by 4.3% for the nine months and by 4.9% in the third quarter.

Other revenue, including effective interest income, ancillary services, and insurance revenue, increased by 16.2% for the nine months and by 15.2% in the third quarter, benefiting from strong credit sales in recent years.

The numbers suggest that retailers with strong in-house credit offerings have been more resilient amid constrained consumer spending, as shoppers increasingly rely on instalment-based purchases to manage pressure on household budgets.

The group notes its collection rate remained resilient at 78.3%, slightly lower than the 79.6% recorded in December 2024 and in line with the half-year to September 2025.

Debtor costs increased by 14.8% for the nine months and by 16.9% in the third quarter, mainly due to growth in the debtors’ book and continued macroeconomic pressure on consumers.

Read: Interest rate cut provides some festive cheer for cash-strapped South Africans

Pepkor challenge

Lewis recently secured the right to intervene in merger proceedings relating to Pepkor’s proposed R3.2 billion acquisition of Shoprite’s furniture business.

In January, the Constitutional Court ruled in favour of Lewis, allowing it to participate fully in the Competition Tribunal proceedings.

Read: Pepkor-Shoprite Furniture merger gets provisional green light

The retailer had sought to intervene on the basis that the transaction could be anti-competitive and harmful to consumers.

The court did not grant Lewis the right to block the transaction, and the outcome will rest with the tribunal.

Pepkor and Shoprite opposed Lewis’s involvement, arguing that it was using competition law to delay or derail the deal.

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