Buy Truworths shares

TRUWORTHS INTERNATIONAL (TRU) Shares

ABOUT TRUWORTHS

📊 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.

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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