Lewis Group flags annual earnings drop of up to 37%

South African retailer Lewis Group on Friday flagged that annual earnings could fall by as much as 37%, after an increase in debt servicing costs, the financial impact of lost trading days and an impairment charge.

The furniture and appliance retailer said its headline earnings per share (Heps) for 12 months ended March is expected to be between 282.2 to 237.0 cents, or between 25% to 37% lower than the same period a year ago.

Heps  is the main profit measure used in South Africa that strips out certain once-off items.

The group is expected to release full-year results on or around August 25.