Lewis feels credit pinch

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Lewis Furniture store signage in Cape Town, South Africa.

Lewis Furniture store signage in Cape Town, South Africa.

JOHANNESBURG - Furniture retailer Lewis is warning shareholders that its earnings will decline by 18 percent.

The company will release financial results next month.

Lewis on Friday blamed the drop in hire-purchase sales as the reason for declining earnings.

This followed the National Credit Regulator&39;s enforcement of credit-affordability assessments.

READ: Lewis Stores wins battle against club fee charges

Lewis recently acquired United Furniture Outlets for R320-million, saying it intended to target upper-income customers.

The furniture retailer said this would help the group sell more furniture for cash rather than credit.