JOHANNESBURG (Reuters) – South African furniture company Lewis’ revenue grew 4 percent in the nine months to December on strong sales during the festive season, it said on Tuesday, sending its shares to an all-time high.
Lewis, which sells furniture and appliances to lower-income shoppers, said in a trading update that festive season sales were boosted by promotional activity and it also benefited from the acquisition of Beares stores in the period.
The news sent the company’s shares 6.4 percent higher to 88 rand, after touching 89.90 rand earlier – its highest level since listing on the Johannesburg Stock Exchange in 2004.
Abri du Plessis, an analyst at Gryphon Asset Management said Lewis had performed well compared to its industry peers.
“It’s a good set of results in this particular industry. With the consumer being under pressure with high debt levels, it’s a tough trading environment for credit retailers,” he said.
Lewis bought more than 60 Bears brand stores from Ellerine, the furniture arm of failed lender African Bank for $8 million last year to increase its exposure to higher income markets. Ellerine is currently under business rescue.
Lewis shares helped push the Johannesburg-listed general retailers index up 1.3 percent to an all-time high of 82,246.16.
