📊 Truworths International was first founded in 1917 with the formation of the Alliance Trading Company. In the 1930s the name was changed to Truworths Fashion House with the opening of the second Truworths store. In the 1940s the company commenced the manufacturing of its own merchandise in South Africa and had proceeded to open 50 new stores by the 1950s, when it achieved its first milestone with the first R1 million in sale merchandise. The group began to diversify its brand with the opening of the Tru Boutique stores, which went on to grow from 80 to 280 specialized boutiques.
📊 Since then the group has grown to become one of South Africa’s leading fashion retailers today, with over 730 outlets in South Africa and a further 50 stores across sub-Saharan Africa, with operations carried through its subsidiary Truworths Limited.
📊 The brand comprises a number of fashion retailers under one retail chain, consisting of Truworths, Truworths Man, Identity, Earthaddict, Uzzi and YDE, as well as children’s fashion retailers Earthchild and Naartjie.
📊 The group maintains logistical efficiency by means of the Truworths Distribution Centre, which delivers merchandise from manufacturers for effective distribution across all of its stores.
📊 The group has also worked to diversify its portfolio through the purchase of Office Holdings in 2015, a UK-based youth footwear retailer, for R5.5 billion.
📊 Truworths International trades on the Johannesburg Stock Exchange (JSE) under the stock symbol –TRU with a market cap of over R31 billion, and also has a second listing on the Namibian Stock Exchange. With its high-value portfolio and its wide customer base, the group has historically reported a strong share price for those who choose to buy them on the JSE.
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VISION & VALUES OF TRUWORTHS
- Truworths has weathered sluggish consumer spending by targeting middle-income customers and diversifying its portfolio. As a result, the company has increased its merchandise sales and recorded a healthy increase in headline earnings. Added to this, its dividend yield has remained historically strong since listing on the JSE, with a 24% annual return for its shareholders.
- The group’s impressive financial data has also been bolstered by its diversification into the UK market with the purchase of Office Holdings, which resulted in record headline earnings despite economic uncertainty over Brexit conditions.
- With this healthy performance in hand, Truworths has worked to consistently expand its operations. The group has invested over R1.8 billion in capital expenditure in order to enhance its portfolio, improve its supply chain and upgrade its IT systems. Trading space has since increased by 8.9% following the acquisitions of Earthchild, Earthaddict, and Naartjie. The group marked R547 million in capital expenditure for 2017 for the expansion of its store footprint and the upgrading of its existing sites.
- All in all, Truworth’s impressive performance, its popularity with its consumer base, and its increasing market presence, have all served to bolster its share price and ensure a strong buy for investors on the JSE.
MARKET PERFORMANCE OF TRUWORTHS
- The live online stock charts show that Truworths shares remain a strong buy in 2019 and beyond, and growth forecasts indicate consistent returns as a result of the group’s expansion plans and the diversification of its portfolio.
- This work to expand and enhance its portfolio will serve to benefit from the inevitable upswing in the market and the resultant increase in consumer spending.
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Before buying any stock or share one has to consider a few factors.
STEP 1: PROPER RESEARCH IS ESSENTIAL
Upon deciding you want to buy TRUWORTHS Stocks / Shares, it is critical for the serious investor to do proper research into the said company. Its values should align with those of the investor’s current portfolio. An investor needs to familiarise himself with the basics and history of the company, as well as its leadership and performance in the market. Its company reports should also be scrutinized.
Consultation with a brokerage firm can also assist in determining whether investing in a specific company will complement the investor’s current portfolio. The investment “risk ladder”, which identifies asset classes based on their relative riskiness, is another useful tool when determining which company’s stock / share is the best to buy.
STEP 2: CALCULATE THE AMOUNT OF INVESTMENT IN TRUWORTHS STOCKS / SHARES
It is important for an investor to monitor his total investment in stock in order to keep his portfolio aligned to his investment strategy. The overall value of his holdings will change with the fluctuation in stock prices, which can throw his portfolio off balance. To determine the amount to invest, multiply the number of shares of each stock by its current market price to determine the total investment in that specific stock. For example, if you own 100 shares of a $5 stock, multiply 100 by $5 to get $500.
STEP 3: DECIDE ON THE STOCK / SHARE ORDER TYPE
Investors can choose from a market order, a limit order, a stop order (also referred to as a stop-loss order) or a buy/sell stop order. It is important to familiarise yourself with each type’s pros and cons before deciding which one will suit your current stock profile best. An investor should be guided in this choice by his investment objective.
STEP 4: OPEN A BROKERAGE ACCOUNT
A brokerage account – also known as taxable investment account – is similar to a retirement account, but more flexible. Where a retirement account has limitations on the amount of money that can be contributed annually, and restrictions on when funds can be withdrawn, a brokerage account is more flexible. The latter has no income or contribution limit and the investor can withdraw his money at any given time. This flexibility, together with its potential investment gains, makes a brokerage account more attractive to serious investors. Brokerage accounts are ideal for goals or savings that are further than five years away, but closer than retirement. It can also supplement an investor’s emergency savings.
STEP 5: COMMIT AND PURCHASE TRUWORTHS STOCKS / SHARES
Lastly, commit to the stock. Pro Tip: Monitor the value of your stock to ensure you have a growing stock value and dividend pay-out. Regularly check the share price online to ensure your investment delivers a positive return on investment. You are now a proud owner of TRUWORTHS stocks / shares.
5 Questions to ask yourself before purchasing any stocks or shares.
- Is it the best time to buy this stock / share?
- Should I buy TRUWORTHS stocks / shares in the current economic climate?
- Can I afford to buy this stock / share?
- What is the forecast of the stock / share growth?
- What is the current price per earning ration on the stock / share?
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