Investors are divided on Truworths INT LTD with concerns centered on margin compression despite steady revenue, exacerbated by load-shedding pressuring consumer discretionary spending, while some bulls see solid store economics and brand advantages supporting a longer-term hold through the current retail weakness.
Summarized from 8 posts · updated nightly
to join the discussion
Truworths sitting at 51.77 on a day like this is interesting, retail's been getting hammered but these guys still have decent store economics and their own brands give them some margin cushion other retailers don't have. The real question is whether consumers actually buy clothes when load-shedding's eating their disposable income. Stock's had a rough run but the valuation's not offensive if they can hold market share through the next couple of quarters.
The margin compression in TRU's recent results is the real story nobody wants to talk about. Revenue's holding up okay but operating leverage is going backwards, and with load-shedding hitting retail footfall harder each year, where does the growth actually come from. Fair value somewhere around 45 on these numbers, not 51.77.
Retail sales environment still tough, but TRU's holding up better than some peers lately.
retail's getting squeezed hard with rates where they are, consumers pulling back on discretionary. tru's got decent store leverage across sa but margins under pressure. long-term view hasn't changed though, apparel cycles and this one will turn. holding through the noise.
pulled the h1 results last night, balance sheet holding up ok
@easy_money_sa yep, volume's finally there too
@braai_boet wrong thread mate, load-shedding chat belongs elsewhere
come on tru, let's go
Come on come on come on!!!
Current R 52,70 — 50% of range
Fundamentals sourced from JSE disclosures. Updated quarterly.