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Truworths International LimitedTruworths International LimitedTruworths International Limited

Truworths International Limited

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Our opinion on the current state of TRUWTHS(TRU)Truworths (TRU) is a clothing, footwear, and accessories retailer that operates in Southern Africa and the UK and is listed on the JSE and the Namibian Stock Exchange. It makes 70% of its sales in South Africa on credit, making its credit management strategies critical. The company operates in a highly competitive industry where numerous retailers, including Woolworths, Checkers, Pick 'n Pay, the Foschini Group, Mr. Price, Ackermans, and Pep, offer similar products. The industry is also challenged by the entry of international brands like Cotton On and is entirely dependent on consumer confidence and spending. Additionally, its sales are influenced by rapid changes in the fashion industry, making profitability difficult. Truworths follows a conservative approach and continuously refines its business model. It operates 767 stores in South Africa, 37 in the rest of Africa, and 132 stores in the UK, Germany, and Ireland. The company acquired Barrie Cline Ladieswear, a supplier for 30 years, and is in the process of launching a new low-cost value chain called "Primark" to compete with Mr. Price and Jet. It plans to roll out 15 to 20 new value stores in the coming months. In its results for the 26 weeks to 29th December 2024, the company reported merchandise sales up 2,5% and retail sales up 2,4%. Headline earnings per share (HEPS) fell 4,6%, while the company's net asset value (NAV) increased by 21,9%. The company stated, "Truworths Africa’s retail sales decreased 1.1% relative to the prior period. Account sales decreased by 0.9% and comprised 70% (Dec 2023: 70%) of the segment’s retail sales for the current period. Cash sales decreased by 1.6%. Online sales continued to show good growth in the current period, increasing by 38% and contributing 5.8% to Truworths Africa’s retail sales." The share reached a high of 11,212c on 4th November 2024 before entering a new downward trend. Our advice is to wait for the share to break up through its downward trendline before investigating further.
JSE:TRU
by PDSnetSA
Our opinion on the current state of TRUWTHS(TRU)Truworths (TRU) is a clothing, footwear, and accessories retailer operating in Southern Africa and the UK. It is listed on both the JSE and the Namibian Stock Exchange. The company generates 70% of its South African sales on credit, making effective credit management a critical factor in its profitability. Truworths operates in a highly competitive retail environment, contending with local players such as Woolworths, Checkers, Pick 'n Pay, Foschini Group, Mr. Price, Ackermans, and Pep, while also facing increasing pressure from international brands like Cotton On. The industry is heavily reliant on consumer confidence and spending, making it highly sensitive to economic conditions. Additionally, Truworths must continuously adapt to the fast-changing fashion landscape to maintain its appeal to consumers. The company maintains a conservative approach, constantly refining its business model. It operates 767 stores in South Africa, 37 stores across the rest of Africa, and 132 stores in the UK, Germany, and Ireland. Truworths has also acquired Barrie Cline Ladieswear, a long-time supplier, and is launching a new low-cost value chain called "Primark" to compete with Mr. Price and Jet. It plans to roll out 15 to 20 new value stores in the coming months. On 9th November 2023, Truworths reported that retail sales for the first 17 weeks to 29th October 2023 were up 10.9%, while online sales grew by 41%, now accounting for 4.7% of total sales. The company also noted strong UK-based Office sales, which increased by 18.9% in GBP terms and 38.8% in Rand terms. For the six months to December 2023, Business Day reported an 8% increase in sales. However, in a trading statement for the 52 weeks to 30th June 2024, Truworths estimated HEPS would decline by 5% to 9%, while retail sales increased by 3.6%. The company attributed the decline in earnings to a reversal of previously recognized impairment losses on the Office trademarks, an indirect tax settlement in the prior period, and other once-off factors. In an update for the 18 weeks to 3rd November 2024, the company reported a 2.8% increase in sales, with credit sales making up 46% of total revenue. While business and consumer sentiment in South Africa had improved following the formation of a government of national unity earlier in 2024, Truworths noted that this optimism had not yet translated into meaningful improvements in disposable incomes. In a trading statement for the 26 weeks to 29th December 2024, the company estimated that HEPS would decline by 4% to 8%, while sales increased by 2.4%. Technically, the share price declined significantly during COVID-19. We previously advised waiting for a break above its downward trendline, which occurred on 4th September 2020 at a price of 3,195c. The stock then reached a high of 11,212c on 4th November 2024 before entering a new downward trend. Current advice: Truworths remains a solid retailer but is facing macroeconomic pressures, including constrained consumer spending. As the stock is now in a new downward trend, we recommend waiting for a clear break above the trendline before considering any new investment.
JSE:TRU
by PDSnetSA
Our opinion on the current state of TRUTruworths, operating under the ticker TRU, is a notable retailer in the clothing, footwear, and accessories sector with a strong presence in Southern Africa and the UK, boasting listings on both the JSE and the Namibian Stock Exchange. A significant portion of its sales, approximately 70%, comes from South Africa and is credit-based, highlighting the importance of its credit management strategies. The retail landscape Truworths navigates is fiercely competitive, with numerous players ranging from Woolworths and Checkers to Pick 'n Pay, the Foschini Group, Mr. Price, Ackermans, and Pep vying for market share. This competition is further intensified by the entry of international brands like Cotton On, making the industry highly susceptible to consumer confidence and spending patterns. Moreover, staying profitable is a challenge due to the necessity for a keen understanding of rapid shifts within the fashion industry. To maintain its market position, Truworths employs a conservative approach while continuously refining its business model. The company operates an extensive network of 767 stores in South Africa, along with 37 stores across the rest of Africa and 132 stores in the UK, Germany, and Ireland. Truworths recently expanded its portfolio by acquiring Barrie Cline, a ladieswear brand that has been a supplier for over three decades. Furthermore, the company is set to launch a new low-cost value chain named "Primark," aimed at competing directly with budget retailers like Mr. Price and Jet. This expansion plan includes the rollout of 15 to 20 new value stores in the coming months. On the 9th of November, 2023, Truworths provided an update indicating a robust performance in the first 17 weeks up to the 29th of October, 2023, with retail sales surging by 10.9% and online sales by 41%, now accounting for 4.7% of total sales. The UK-based Office segment of Truworths saw a remarkable 18.9% increase in sales in Sterling terms to £91.3 million, up from the previous period's £76.8 million, translating to a 38.8% increase in Rand terms to R2.1 billion. Business Day reported that Truworths achieved an 8% sales increase in the six months leading to December 2023. The company anticipates that its HEPS will rise by between 0% and 4% for that period, noting a shift in the composition of Group retail sales with account sales representing 48%, down from 52% the previous year, while cash sales saw a 17.0% increase. The share price of Truworths was notably affected by the COVID-19 pandemic, but analysts suggested a wait-and-see approach until it surpassed its downward trendline. This turnaround occurred on the 4th of September, 2020, with the share price jumping to 3195c and further appreciating to 7757c. Given its current P:E ratio of 8.88, Truworths is considered to be of good value at these levels.
JSE:TRU
by PDSnetSA
Our opinion on the current state of TRUTruworths (TRU) is a clothing, footwear and accessories retailer that operates in Southern Africa and the UK and is listed on the JSE and the Namibian Stock Exchange. It makes 70% of its sales in South Africa on credit - so its credit management strategies are critical. It is in a highly competitive industry where everyone is selling clothes from Woolworths, Checkers and Pick 'n Pay to the Foschini Group, Mr. Price, Ackermans and Pep. It is an industry constantly beset by the entry of overseas brands like Cotton On and which is entirely dependent on consumer confidence and spending. Its sales are also dependent on a fine appreciation of the rapid changes in the fashion industry. All these factors make it very difficult for the company to remain profitable. Truworths has a very conservative approach and is constantly refining its business model. It has 767 stores in South Africa with 37 in the rest of Africa and 132 stores in the UK, Germany, and Ireland. The company acquired Barrie Cline ladieswear which had been supplying Truworths for 30 years. The company is in the process of launching a new low-cost value chain, called "Primark", to compete with Mr. Price and Jet. It plans to roll out 15 to 20 new value stores in the next few months. In an update on 9th November 2023 the company said that retail sales for the first 17 weeks to 29th October 2023 were up by 10,9% and online sales grew by 41%, now comprising 4,7% of total sales. The company said, "Retail sales for the United Kingdom-based Office increased in Sterling terms by 18.9% to £91.3 million relative to the prior period's £76.8 million. In Rand terms, retail sales for Office increased by 38.8% to R2.1 billion." Business Day reported that Truworths increased sales by 8% in the six months to the end of December 2023. Technically, the share fell on COVID-19, but we suggested waiting until it broke above its downward trendline. That break came on 4th September 2020 at a price of 3195c. Since then the share has appreciated to 7579c. We consider it to be good value at current levels on a P:E of 8,68.
JSE:TRU
by PDSnetSA
$JSETRU - Truworths: Will The Bull Trend Resume?See link below for previous analysis. Truworths had a great run from the 4682 low to peak at 8441. Recent price action is showing toppish signs. Though it's still premature to call for a head & shoulders pattern, I am seeing potential signs of one therefore I will be monitoring price action with that in mind. Price has found strong support between 6600 to 6800 and I have marked this zone as the neckline. Buy dips above 6697 with that same level as the stop-loss price in the short-term.
JSE:TRULong
by Loyiso_BlaqueSoros_Mpeta
TRU: broadening top pattern developing?A price action above 7300 supports a bullish trend direction. Increase long exposure for a break above 7500. The target price is set at 7800 (just below its 23.6% Fibonacci retracement level). The stop-loss is set at 7000 (its 61.8% Fibonacci retracement level). A potential broadening top pattern appears to be forming, although it is not yet fully developed. This pattern, characterised by increasing highs and lows, suggests a possible price expansion.
JSE:TRULong
by Peet_Serfontein
TRUWORTHS INT (TRU)TRUWORTHS - The current price is now testing the lower trend line within a broadening wedge pattern. Anticipating potential support at the trend line; however, a break below it might signal a significant decline, offering a potential short play. It's worth noting that in the 50 days leading up to the past six earnings release dates, there has been an average upward movement of over 20% following a period of downward price movement. Considering the current testing of the lower trend line, it could serve as support for another upward trend.
JSE:TRU
by MarketMeistersTrading
TRU Sell at current levels or higher. Can it trade slightly higher? Yes. Can it build a short term consolidation top for a few more sessions? Yes. The following factors, however, may favor traders looking to enter a short/sell trade (1) The share has appreciated by 19.8% off it's recent lows (19 October). (2) At current levels, using multiple metrics, the share is in an overbought range (including trading 30% above it's 200-day moving average and 60% above it's 200-week moving average). (3) Despite being in an overbought range, it can trade higher, however the reward-to-risk is unappealing and does not favour buyers. (4) Candle Structure: The bullish bars have been developed near the tail end of an upside move. What matters for those looking to sell is the follow-up candle, which can be as follows: a 'doji' which signals indecision, a 'long upper tail' which may signal exhaustion, a 'dark cloud cover' which may also signal exhaustion. (5) The printing of the aforementioned candles would suggest that the share due a pause/consolidation or minor pullback. As always, traders could consider the following if/when the share approaches the target: bank/take Profit, partially scale out, adjust the stop-loss to protect profits Time Stop: 06 February 2023 Entry: 8189c Target: 7420c Stop-loss: 8590c
JSE:TRUShort
by techpers
TRUEducational Post Generating Cash Flow Through Active Trading Strategies: Truworths (TRU) As An Example Followers of my research have benefitted from my focus on price and in particular, the short term time frame that looks to capitalize off volatility of share prices. Going forward, I'm looking for TRU to unwind from an overbought range however, here are two occasions where clients have been alerted to opportunities on both the buy (long) and sell (short) side. Sell/Short. Followers are regularly alerted to oversold/overbought conditions which helps to recognized potential trading opportunities. In this instance, the overbought status and price extension versus the 200-day were key reasons for the sell-side reward-to-risk being favourable. From 7647c, we saw the share price trade down to 6808c, exceeding the downside target. Buy/Long/Cover Short. Followers are regularly alerted to potentially significant developments on the standard deviation screens, from either a buy, sell or neutral perspective. On 21 October (pre-market) a chart was highlighted which showed the share trading at the lower boundary of it's 50-day 2 standard deviation linear regression channel. From 6917c, we saw the share gain 18.3% to close at 8183c on Friday.
JSE:TRU
by techpers
TRU. 7% In The MoneyThe original idea was also published on this platform in real-time (see attached). As a side note, I published this idea last week Monday, so it was interesting to see Michael Mark (CEO) and a number of other executives having sold on Tuesday (SENS released on Thursday). The CEO selling over R36m worth of shares! The following is my comment on our client group in the last few minutes. Update: TRU Truworths. Today the share traded at a 3-week low of 7102c, which has brought the current gain on the sell/short from the suggested entry to 7.1% (ungeared). As always, traders could consider the following: > Bank/Take Profit > Partially scale out > Adjust the stop-loss to protect profits The chart is 'current'.
JSE:TRU
by techpers
TRUWORTHS - Running out of gas?Price is returned to test the 20 day moving average and there is a an evident rising wedge which has formed. RSI & MACD bearish divergence I would be cautious to the long side here especially if bulls can't hang onto the R74 level. Sure, here is the explanation without number annotations: The Rising Wedge is a pattern used in technical analysis to predict a likely bearish reversal. It is characterized by a narrowing range of price with higher highs and higher lows, both of which are enclosed by upward sloping trendlines. Here are the key characteristics of a rising wedge pattern: - Upward Trend: The pattern typically forms during an upward price movement. - Converging Trendlines: Both the support and resistance trendlines slope upwards, but they converge as the pattern matures. - Volume: A declining volume accompanying the formation often strengthens the pattern's bearish signal. - Breakout: Confirmation of the pattern occurs when the price breaks below the lower support trendline, signaling a potential bearish reversal. The rising wedge is generally considered a bearish pattern because it signals that the buying momentum is slowing down. The narrowing price range and declining volume suggest that the buyers are losing control, making it more likely for the price to break downwards.
JSE:TRU
by Trader-Dan
TRUShort to medium term trading opportunity with a higher-than-average risk. While high bullish momentum has been in place, certain factors point to the share trading in an overbought range i.e. (1) the share is 25% above it's 200-day moving average (2) relative to the Top 40 Index, the share is trading at 34% above it's 40-week moving average (3) The 7 and 14-week RSI's trade in a high bullish momentum/approaching overbought range (4) the incline support extending back to the 30 May low is steep and at risk of being breached (5) bearish divergence exists on both the MACD and 14-Day RSI. Should the price approach the intended target, the following applies: (1) Bank/Take Profit, (2) Adjust the stop-loss closer to the target, (3) Scale out of the position as it approaches the target. Time stop: 19 December 2023 TRADING LEVELS: Entry: 7647 Target: 7011 Stop-loss: 8127
JSE:TRUShort
by techpers
TRU vs JSE Top 40 IndexFor more research insights, including trade ideas, get in touch today. In the upper panel is a ratio weekly chart of TRU vs the JSE Top 40 Index. In the lower panel is the distance of the ratio vs the 200-day/40-week simple moving average. When the ratio rises, it means that TRU is outperforming the market and when it declines, it means that TRU is underperforming the market. What stands out to me is the following: On a relative basis, the ratio is trading at 29% above it's 200-day/40-week SMA. When considering the historical extensions, this is a technically expensive range and may suggest that the share is not offering value on a short to medium term basis.
JSE:TRU
by techpers
TRUWORTHS - Short IDEA- Price has rallied hard from the June swing low of R46.82 and looks to be running out of steam at this resistance level. - A short trade is initiated to look for a reversion to the mean . - RSi overbought -MACD crossing over Stop (daily close above) and take profit on the chart. "A reversion to the mean trade is a trading strategy that assumes that over time the prices of any asset (stock, commodity, FX currency or cryptocurrency) in time will revert back to the mean or average price. In other words, reversion to the mean trading comes down to the old saying: “What goes up must come down.” Mean reversion trading tries to capitalize on extreme changes in the price of a particular security, assuming that it will revert to its previous state. This theory has led to many investing strategies that involve the purchase or sale of stocks or other securities whose recent performances have differed greatly from their historical averages."
JSE:TRUShort
by Trader-Dan
$JSETRU - Truworths: Is This The Start Of A Medium-Term Bull RunThe last analysis on Truworths was on 14.06.2023 and indeed the bottom proved to be in at 4682, link below. Truworths has taken off like a rocket with very shallow corrections. The corrective pattern from August 2021 to May 2023 is a running flat characterized by: Wave B terminating beyond the origin of wave A. Wave C terminating above the terminal point of wave A. The strength of the move could be sign that the bulls are back and after a 21 month bear correction, this could be the beginning of a significant medium-term bull run. Buy the dips.
JSE:TRULong
by Loyiso_BlaqueSoros_Mpeta
Truworths looking like The Foschini and it's up to R69 (Nice)Inverse Head and Shoulders potentially is formeing on Truworths. Through my experience, this formation might be short as the price action is very strong to the upside. It might skip the entire Right SHoulder and just head right to the target from the getgo. 7>21 Price<200 But price is so close to the level, it can smell it. If it breaks up, it'll be great for upside. RSI>50 Target R69.45 ABOUT THE COMPANY ~ Truworths is a South African-based retail company specializing in fashion apparel, footwear, and accessories. ~The company was founded in 1917 and is headquartered in Cape Town, South Africa. ~ Truworths operates a vast retail network of stores across South Africa and has a presence in several other African countries, including Namibia, Botswana, Zambia, and Eswatini. ~The company's retail brands include Truworths, Truworths Man, Identity, Uzzi, and Earthchild, catering to different customer segments and fashion preferences. ~Truworths focuses on providing trendy and affordable fashion for men, women, and children. HOW IT GOT ITS NAME Truworths got its name from its founders, Isaac Krawitz and his brother, Hillie Krawitz. When the company was established in 1917, they named it "The Alliance Trading Company." However, as the business grew and expanded, they decided to change the name to Truworths in 1933. The new name was chosen to reflect the company's commitment to providing customers with quality products of true worth or value.
JSE:TRULong
by Timonrosso