Rex Trueform Clothing Company Limited. JSE: RTO

REX Trueform Clothing shares

Background of Rex Trueform

  • Rex Trueform Clothing Company is a clothing and fashion accessories retailer operating in South Africa through its Queenspark and J CREW brands. The group has stores nationwide, as well as franchised outlets in Namibia, Botswana and Kenya. The group’s history stems back to 1937, when it was established in Cape Town. Rex Trueform shares were subsequently listed on the Johannesburg Stock Exchange (JSE) in 1945.

  • Queenspark operates under the Retail segment of the company, whilst the group’s Property segment has a direct investment in a portfolio of properties in and around Cape Town, either held for the purposes of operations or dedicated investments. These include the head office premises and distribution centre. Overall, the group operates 58 stores.

  • Today, Rex Trueform shares have a JSE market cap of ,and the company recorded R525.5 million turnover in 2016. Rex Trueform share price has struggled on the live JSE stocks chart, mainly due to the challenging economic conditions in South Africa.

Rex Trueform Shares Growth Driver

  • Rex Trueform aims to be a niche retailer focused mainly on higher LSM customers, with a mix of emporiums and standalone stores mainly in major South African cities and a franchise model operation in Africa.

  • The group drives performance in the retail division by expanding its range of products, increasing trade space and expanding to online store offerings. This includes organic growth of existing brands and the introduction of new internally-developed brands. In the property segment, the group owns and leases commercial properties, some of which have been conservatively earmarked for development in the medium to long-term.

  • Rex Trueform results have however been affected by a slowdown in consumer demand and economic growth in South Africa. After posting losses in 2013 and 2014, the group returned to a R33 million profit in 2015. The latest financial data highlighted a drop in profits to R11 million, as trading expenses increased sharply. Regulatory changes also affected the group’s credit customer base. As a result, dividends decreased from 61 cents per share to 27 cents.

  • Capital expenditure has been used to implement a new enterprise resource planning IT system which management aims to extract value from. On the online front, products are being sold through the Zando website, with some promising prospects for the company, enabling it to reach a larger client base.

  • Property segment results were more pleasing, with operating profit amounting to R8.5 million, largely as a result of the successful launch of the Rex Trueform Office Park.

Rex Trueform Group Investor Tip

  • The group has forecast that trading conditions will remain challenging as a result of legislation changes, sluggish economic growth and pressure on consumer spending. Investors have not shown confidence to buy Rex Trueform shares in the current environment, particularly when the company is competing against better performing, larger stocks. Rex Trueform share price has dropped steeply on the JSE stocks chart in recent years, and plenty of work is needed if the company wants to attract investors willing to buy the shares.

Rex Trueform Major Shareholders

African & Overseas Enterprises Ltd, Ceejay Trust and Brimstone Investment Corporation Ltd.

  • Sector

    Consumer Discretionary

  • Industry

    Apparel & Textile Products

  • Sub industry

    Apparel, Footwear & Acc design

How to buy Rex Trueform Group Shares

  • Rex Trueform : How to buy Rex Trueform Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Rex Trueform Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in Rex Trueform Group and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Rex Trueform Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in Rex Trueform Group.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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