Furniture and homeware retailer Lewis Group reported growth in the nine months to December 2025, heavily supported by higher demand for credit sales.
The group said revenue rose by 11.1% over the nine-month period, with credit sales playing a major role.
Credit sales increased by 9.1% and accounted for 69.4% of total revenue. This is up from 68.2% in the same period in the previous year.
Slight decline in collection rate
However, the group noted a slight decline in its collection rate. For the nine months to December 2025, the collection rate stood at 78.3%. This is compared with 79.6% for the same period ending December 2024. And it may reflect pressure on customers’ ability to meet repayment deadlines, despite the growth in sales.
Group merchandise sales grew by 7.1% over the nine-month period. Performance in the third quarter was particularly strong. The sales rose by 7.8%, largely driven by Black Friday promotions.
This followed growth of 8.9% in the first quarter and 4.6% in the second quarter. And it shows steady momentum across the year.
Comparable store sales, which track performance at existing stores, increased by 4.3% over the nine months.
The third quarter delivered an even stronger increase of 4.9%, indicating improved trading conditions in established locations.
Revenue streams growth
Other revenue streams also showed healthy growth. Income from effective interest, ancillary services, and insurance, rose by 16.2% for the nine-month period and by 15.2% in the third quarter.
The group said this was supported by the strong level of credit sales built up over recent years.
However, the group said debtor-related costs continued to rise. Debtor costs increased by 14.8% for the nine-month period and by 16.9% in the third quarter. This was mainly due to the expansion of the debtors’ book and ongoing macroeconomic pressure on consumers.
