LEW appears to be back on track to sustainable growth as its various strategies put in place over the last few years start taking shape. Its traditional retail division’s operating profit margin is unlikely to return to the levels experienced five years ago, in our view. LEW has repurchased 18% of its total shares in issue over the last two years which has negatively impacted the liquidity of the stock. We are highly concerned in this regard as LEW plans to continue buying back shares in the current financial year.
