Lewis updates the market on damage

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Lewis updates the market on damage

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Published Date: 2021-07-20 | Source: INCE|Community | Author: The Finance Ghost

Lewis updates the market on damage

Not that Lewis. I caused some confusion on FinTwit over the weekend by tweeting about Formula One, which has been my favourite sport since I could walk. Whilst that Lewis is frequently involved in damage, this article is about Lewis the furniture group.

With a strategy targeting lower-LSM groups, Lewis stores are typically found in lower income areas that are more susceptible to civil unrest. In that context, it's not surprising to learn that 58 stores were looted and damaged.

During the worst of the riots, 280 stores were closed as a precautionary measure. The group operates just over 800 stores, so that means more than a third of the footprint was shut last week. Lasting damage has been done to over 7% of the store base.

Lewis was one of the few shares on the JSE that ended in the green yesterday. The counter is up 65% year-to-date, rewarding value investors who have looked for bargains on the JSE this year.

The company's resilience in the wake of the latest sell-off will certainly please its shareholders.





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