Truworths Research Report

Truworths (TRU) – The going could get tougher

We review the long-term trends in TRU’s credit customer base in SA and find that while management has done well to keep the average real debt per customer constant over the past 13 years, its credit customers have trended to buying fewer items from this retailer regardless of the economic cycle. Management impressed with good stock control, but there are risks to these short-term fixes.