Staff WriterÂ
Lewis Group has posted strong unaudited results for the six months ended 30 September 2025, recording double-digit revenue growth, wider profit margins and a sharp rise in operating profit.
The retailer also declared an interim cash dividend of 337 cents per share.
The Group has 27 stores in Namibia. In 2015, it acquired 21 local outlets, adding to its existing six.
Despite a tough trading environment, Lewis continued to invest in long-term growth by expanding its store network and growing its credit customer base.
The debtors book grew by 14% to N$8.5 billion, supported by strict credit-granting rules and steady customer payments.
During the reporting period, Lewis opened a net 40 new stores, the highest number added in any six-month period in its history.
This lifted its total store count to 958. Of the new stores, 28 were Real Beds outlets, expanding the bedding retailer acquired in 2024 to 44 stores.
Lewis lifted its gross profit margin to 41%, in the middle of its target range. Operating costs increased by 10% but remained below revenue growth, despite expansion-related expenses.
The debtors book stayed healthy, with satisfactory paying customers rising to 82.7%. Debtor costs increased 12.9%, but the impairment provision ratio improved slightly to 36.9%.
Operating profit rose by 21.4% to N$522 million. The operating margin expanded by 250 basis points to 20.7%. Headline earnings increased by 16% to N$335.1 million and headline earnings per share rose 16.8% to 648 cents. Borrowings increased due to investment in credit growth and new stores.
The interim dividend increased by 12.3% to 337 cents per share, based on a 55% payout ratio. Net asset value per share rose 6.6% to N$98.23.
Lewis expects trading conditions in South Africa to remain difficult because of weak economic growth, high unemployment and low consumer confidence. However, lower inflation and possible reductions in borrowing costs may ease pressure.
The Group plans to maximise sales during the high-volume Black Friday and festive season period with targeted promotions, new products and strong stock levels.
It also plans to open between 15 and 20 more stores in the second half of the year, mainly in the specialist bedding segment.
