South African furniture and appliances retailer Lewis Group has delivered an impressive first-half performance, fuelled by its most ambitious store-expansion drive in years. The company opened a net 40 new outlets in the six months to September 2025, achieving its full-year target in just half the period and lifting merchandise sales by 6.7 per cent to R2.5 billion.
Traditional Lewis, Best Home and Lifestyle stores, which still generate nearly 90 per cent of sales, grew revenue by 6.4 per cent, while the fast-expanding speciality bedding division – led by UFO, Bedzone and the recently acquired Real Beds brand – surged 9.1 per cent. Comparable-store sales across the group rose a more modest 2.3 per cent, reflecting the cautious spending mood among consumers.
Operations beyond South Africa’s borders, representing 15.1 per cent of the total footprint, outperformed with sales up 7.7 per cent and now contributing 18 per cent of group merchandise revenue. The aggressive rollout pushed the total store count to 958, including 28 new Real Beds outlets that have taken the bedding chain to 44 locations since its acquisition last year.
Overall revenue climbed 11.3 per cent to R4.8 billion, while headline earnings leapt 16 per cent to R335.1 million. Headline earnings per share followed suit with a 16.8 per cent increase to 648 cents, as reported by Business Day. Operating profit advanced 21.4 per cent to R522 million, helped by a 250-basis-point expansion in operating margin to 20.7 per cent, driven by improved gross margins and a healthier debtor book.
The debtor book itself expanded 14 per cent to R8.5 billion, underlining the group’s confidence in its credit vetting and collection processes despite broader economic headwinds. Encouraged by the robust showing, Lewis raised its interim dividend by 12.3 per cent to 337 cents per share.
Management acknowledged that household budgets remain squeezed, with unemployment stubbornly high and real wage growth limited in a low-growth environment. However, falling inflation and successive interest-rate cuts are beginning to ease pressure on disposable incomes, offering tentative hope for the crucial festive trading period.
To capitalise on Black Friday and Christmas demand, the group is rolling out aggressive promotional campaigns across all banners, backed by fresh product ranges and ample stock availability. According to Moneyweb, Lewis has already secured extended credit terms with key suppliers to support the seasonal push, while maintaining disciplined inventory management.
Looking ahead, the retailer plans to add another 15 to 20 stores in the second half, concentrating primarily on the high-margin specialist bedding brands that have emerged as a standout growth engine. With consumer sentiment showing early signs of improvement following the formation of the government of national unity and monetary easing, Lewis appears well positioned to extend its momentum into 2026 and beyond.