Truworths Int Ltd is an investment holding and management company listed on the Johannesburg Stock Exchange (JSE) with its main operating companies being leading retailers of fashion clothing, footwear, homeware and related merchandise. Its African brands include Truworths, Daniel Hechter, Inwear, Identity, and LTD.
The graph below shows the latest Truworths Int Ltd share price (JSE: TRU). While Truworths has made strides in certain areas, such as increasing overall retail sales, it has also experienced setbacks, including a decline in half-year profits and a significant drop in its share price.
Truworths’ operations are divided into two primary segments: Truworths Africa and Office London. The Truworths Africa segment encompasses the company’s retail operations within South Africa and other African countries. This segment has traditionally been a key driver of revenue, but recent performance has been impacted by subdued consumer spending and economic uncertainty. The Office London segment, on the other hand, represents Truworths’ footwear retail business in the United Kingdom. While this segment has shown some resilience, it too faces challenges in a competitive and evolving market.
YOUR CAPITAL IS AT RISK
Recent Developments
The past year has been characterized by a mix of positive and negative developments. While Truworths has made strides in certain areas, such as increasing overall retail sales, it has also experienced setbacks, including a decline in half-year profits and a significant drop in its share price. The strategic investment by Ninety One SA Ltd. signals confidence in the company’s long-term potential, but the prevailing sentiment among investors appears to be one of cautious optimism, tempered by concerns about the broader economic climate and the sustainability of consumer spending.
The recent half-year financial performance, revealed a 4.6% decline in profit, with headline earnings per share falling to 489.2 cents. This decline reflects the challenging retail environment in South Africa, where discretionary spending remains muted. Despite the profit decline, Truworths declared an interim gross cash dividend of 317 cents per share, signaling a commitment to returning value to shareholders. The company also noted that certain macroeconomic factors are contributing to a more positive trading environment and improved consumer sentiment, suggesting a potential turnaround in the near future.
The company’s share price has also experienced a significant decline. Truworths’ share price stood at ZAR 72.80, reflecting a 4.2% decrease from the previous closing price. Year-to-date, the stock has declined by 29.7%, making it one of the worst performers on the Johannesburg Stock Exchange. This decline reflects investor concerns about the company’s financial performance and the broader economic outlook. However, Truworths has been among the most actively traded stocks on the JSE, indicating continued investor interest and potential for future growth.
In September 2024, Ninety One SA Ltd. acquired a 10% stake in Truworths International. This strategic investment is a significant vote of confidence in Truworths’ potential for growth and expansion. Ninety One SA Ltd. is a reputable financial services group with a strong track record of identifying and investing in promising companies. Their investment in Truworths suggests that they believe the company is undervalued and has the potential to deliver strong returns in the future.
Who is Truworths International Ltd?
The history of Truworths Int Ltd can be traced back to 1917 when it was founded as The Alliance Trading Company.
Today, Truworths Int Ltd has a diversified portfolio of products and services in more sectors of the Consumer Services value chain and renders its services through 728 stores in South Africa, and 49 elsewhere in Africa.
Truworths International Ltd. Is listed on the JSE and the Namibian Stock Exchange and its principal trading entities, Truworths Ltd. and Office Holdings Ltd, are engaged either directly or through subsidiaries, concessions, agencies or franchises, in the cash and account retailing of fashion clothing, footwear and related merchandise.
The current CEO of Truworths Int Ltd is Michael Samuel Mark.
| Growth, Valuation, Trading | Information |
| Gross Turnover | |
| 52-Week Range | |
| Shares Outstanding | |
| Earnings per Share | |
| P/E Ratio | |
| 5 Yr Ave Dividend per Share | |
Truworths Int Ltd’s equity stocks are for sale online on the Johannesburg Stock Exchange (JSE) under the stock symbol TRU.
Major shareholders are Public Investment Corporation SOC Ltd., Ninety One SA (Pty) Ltd., Westwood Global Investments LLC, BlackRock Inc, Abax Investments.
Truworths Int Ltd forms part of the Consumer Services sector, specifically, the General Retailers industry of the Johannesburg Stock Exchange (JSE).
Truworths Int Ltd Stock Chart – 5 Year
Company Essentials
Truworths Int Ltd has its headquarters at No 1 Mostert Street, Cape Town, 8001. Truworths Int Ltd has more than 11 700 employees. The company currently serves clients in areas like South Africa and the United Kingdom, and have an emerging presence in Germany, the Republic of Ireland and certain sub-Saharan African countries.
Truworths has a well-established brand reputation, a loyal customer base, and a diversified portfolio of brands that cater to a wide range of consumer preferences. The company has also demonstrated a willingness to adapt to changing market conditions and invest in new technologies and strategies. Furthermore, the strategic investment by Ninety One SA Ltd. suggests that sophisticated investors see value in Truworths that the market may be overlooking.
It’s possible that the current challenges facing Truworths are temporary and that the company is well-positioned to rebound strongly once the economic climate improves. The company’s strong brand reputation, loyal customer base, and strategic investments could provide a solid foundation for future growth. A contrarian investor might see the current market pessimism as an opportunity to acquire Truworths shares at a discounted price, with the expectation of significant returns in the long term.
How to buy Truworths International Shares – Step by Step
The stock market is one of the most attractive financial markets that sees millions of retail investors and traders’ participating daily. To buy, sell or trade Truworths Int Ltd stocks on the Johannesburg Stock Exchange (JSE), traders and investors can follow a few simple steps:
- Find the share that you want to buy, in this case, “TRU”.
- Select a forex broker that offers access to the Johannesburg Stock Exchange (JSE).
- Review the broker’s trading conditions, fees, deposit and withdrawal methods, trading platform, customer support, regulation, and other components to ensure that they are aligned with your trading plan.
- Open a live trading account with the broker by completing the online application form and providing the necessary documentation to verify the trading account.
- You are now ready to make your first share purchase through the broker.
- You can further start to build and diversify your portfolio by buying more shares.
YOUR CAPITAL IS AT RISK
🟩 The Bull Case for JSE: TRU
- Strategic Investments: The investment by Ninety One SA Ltd. underscores confidence in Truworths’ long-term potential.
- Dividend Payouts: Continued dividend declarations signal a commitment to shareholder value.
- Improving Macroeconomic Factors: Favorable macroeconomic trends could boost consumer spending and improve Truworths’ financial performance.
- Office London Performance: The Office London segment has demonstrated resilience and growth potential.
- Active Trading Volume: High trading volume suggests continued investor interest and potential for future price appreciation.
🟥 The Bear Case for JSE: TRU
- Declining Profits: The recent decline in half-year profits raises concerns about Truworths’ ability to maintain profitability.
- Share Price Decline: The significant drop in share price reflects investor pessimism about the company’s prospects.
- Muted Consumer Spending: Weak consumer spending in South Africa poses a challenge to Truworths’ retail operations.
- Truworths Africa Decline: The decline in retail sales in the Truworths Africa segment is a cause for concern.
- Economic Uncertainty: Broader economic uncertainty could further dampen consumer spending and negatively impact Truworths’ financial performance.
