Lewis Group Limited (LEW) Earnings Call Transcripts

Lewis Group Limited's Latest Earnings Call - May 28, 2026

In the Q1 FY2026 earnings call, Lewis Group Limited reported a revenue increase of 11.1% to ZAR 10.3 billion, driven by strong merchandise sales growth of 7.3%. Earnings per share rose by 13%, while headline earnings per share increased by 18.3%. Management maintained a positive outlook despite external challenges, indicating a commitment to open at least 40 new stores in FY2027 and a focus on responsible credit growth.

Reported metrics

Guidance from management

Management plans to open at least 40 new stores in FY2027 and expects credit sales to drive future growth. They have adjusted the borrowings ceiling to 30% to maintain flexibility in uncertain economic conditions.

What management said

Yes. I mentioned our claims ratio. So we have seen an increase from 21% to 31% during this period. Obviously, a big driver in all of this is loss of employment claims. It's very difficult to actually see how all of this is going to finally pan out other than to say that we haven't seen a significant change in trends recently during the 2 trading months of April and May.

Yes. Very good question. Yes, in tougher economic times like this, the appetite for credit normally increases. Yes, you will see a further increase in decline rates just naturally and not because of the fact that we plan to actually tighten our credit granting criteria at this point in time. So I think it's fair to assume that there will be a further increase in the actual size of the book. And for that reason, we'v...

What analysts pressed on

Analysts expressed concerns regarding the rising nonperforming loans (NPL) ratio, which increased from 7% to 9.1%. They questioned management on the thresholds that would trigger tighter credit policies, given the increased uncertainty in consumer spending.

Main topics on the call

• Revenue Growth — Lewis Group reported revenue of ZAR 10.3 billion, an increase of 11.1% year-over-year, surpassing the ZAR 10 billion mark for the first time. Management stated, "The Lewis Group demonstrated strong sustained growth momen...
• Earnings Performance — Earnings per share increased by 13%, while headline earnings per share rose by 18.3%. This strong earnings performance reflects effective cost management and operational efficiency, as highlighted by the operating profit...
• Store Expansion — The company opened a record 58 new stores during the period, exceeding the target of 40. Management emphasized their strategy to "continue to grow market share in a very tough climate," showcasing their commitment to exp...
• Debt Management — Total borrowings increased by ZAR 350 million, with a borrowings ratio of 22.4%, well below the 25% ceiling. Management noted, "We are trading in very uncertain times," indicating a cautious approach to debt amidst econo...

Read the full Lewis Group Limited transcript (May 28, 2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 16 Lewis Group Limited earnings call transcripts on record, spanning August 25, 2020 to May 28, 2026. Based on this history, Lewis Group Limited reports semi-annually. The most recent call on file is dated May 28, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

LEW

Exchange

JSE

Country

ZA

Sector

Consumer Discretionary

Industry

Specialty Retail

Calls on record

16

First call

August 25, 2020

Most recent

May 28, 2026

Reporting cadence

semi-annually