STOCKS TELEGRAPH

Tag: NAKD Stock Price

  • Why did Naked Brand Group Limited (NAKD) stock fall in Pre-Market today?

    Why did Naked Brand Group Limited (NAKD) stock fall in Pre-Market today?

    Shares of Naked Brand Group Limited (NAKD) stock were down today in the Pre-Market trading session.NAKD stock price was down by 2.14% to drop at $0.68 a share as of this writing. It seems that NAKD is not performing well in recent times as it was down by 2.10% at the previous closing. Let’s try to understand the current scenarios of NAKD stock.

    What’s happening?

    Naked Brand Group Limited (NAKD) is the leading company in intimate apparel and sells its products in Australia, New Zealand, United States, and Europe through offline and online mediums. NAKD stock performed well in early 2021 but it seems that NAKD is again falling back to earth for the past couple of months. Currently, we find no specific news by the Naked Brand to justify this bearish sentiment. Furthermore, there are no signs of analysts downgrades or shrank targeted per share price of NAKD. A situation like this spreads confusion among investors as one group of investors thinks of it as the opportunity to buy while the other group shows reluctance to take any decision. So what you need to know at this time? Let’s look at the business development of NAKD stock.

    Business Development:

    On March 29, 2021, Naked stock announced that it had completed multiple strategic capital financing that resulted in the net proceeds of $270 million and weaned itself from debt obligations. Moreover, NAKD is in the final stages of getting shareholder approval for divestiture of its brick-and-mortar operations. Divestiture of Bendon Brick-and-Mortar operations is expected to be complete in the second quarter of 2021.

    Following the current scenarios, NAKD Management is focused on the advancement and expansion of  E-commerce business in order to meet the requirements of the digital world and making Naked Brand, a lead, in the intimate apparel market. Fortunately, Naked stock has a considerable amount in its balance sheet to support the development of Naked’s digital transformation.

    Conclusion:

    Things are gloomy for NAKD stock as far as market sentiment is concerned. The good part is that NAKD stock is free from debt and has sufficient capital for the growth of its eCommerce business. But there is a big question mark whether Naked’s efforts for its eCommerce business would prove to be fruitful or not as many big brands are still struggling due to great competition. Hence investors should consider all the pros and cons in addition to fundamental and technical analysis of Naked stock before taking any decision.

  • The Naked Brand Group Limited (NAKD) stock plunged today. Here’s why it happened

    The Naked Brand Group Limited (NAKD) stock plunged today. Here’s why it happened

    Naked Brand Group Limited (NASDAQ: NAKD) stock recently traded at $0.70 and is down 8.3%, at the time of this writing. The recent activity that correlates with this news is the fact that investors are becoming aware of the company’s poor-performing fundamentals and are pulling out of the stock.

    The rise and fall of Naked Brand Group’s fashion trend

    Naked Brand Group Limited (NAKD) was considered to be Europe’s top 20 fastest growing companies.  The company is a designer and manufacturer of apparel and swimwear outfits. It has collaborated with many popular brands for several projects. The apparel company’s mission outline states “focused on enhancing the architecture of the body”.

    However, contrary to its mission statement, NAKD has not been focusing on its own fundamentals which have been severely weakened. The apparel company has been reporting net losses for consecutive five years and what is worse is that these losses have ascended with the passing of years. The company reported a loss of $19.06 million in 2016 and in 2020 it reached a net total of $35.17 million.

    In 2017, NAKD stock was truly in the spotlight when it traded at an all-time high of an exceptional $1420. However now, due to the weakened outlook of the company’s fundamentals, NAKD stock trades around 77 cents. The stock did soar recently in this year (January) but it was due to the hype that retail investors of reddit had caused. It did provide a strong rally to NAKD’s stock which surged to a whopping 300% in three days but quickly died down.

    This is because the external motivator for the positive stock movement could not overcome the underlying weak fundamentals of NAKD. The reason why NAKD stock has not been performing well is that its overall sales have declined and the company reported $15.02 million negative cash flow in 2020 (compared to $9.82 million in 2019).

    Shifting exclusively to an e-commerce platform may not be a good idea

    Naked Brand’s recent attempt to focus its shifting from physical retail business to e-commerce line has shown quite an impressive growth. However, in doing so, it has exclusively focused on its e-commerce platform “FOH Online”. The overall resurgence of retail business due to the easing of the pandemic lockdown will not benefit the company’s retail subsidiary and Flagship brand, Bendon now that it is focusing on FOH Online.

    Furthermore, this growth in the sales of its e-commerce does not compensate for the overall loss in the company’s net revenue growth. Several experts of fashion and apparel businesses suggest that the Naked Brand Group (NAKD) may have fallen victim to the harsh and unreasonable trends of the fashion industry. The brand simply may have run its course of popularity and consumers do not seem to buy any hype around Naked Brand’s latest fashion trend and marketing.

    At this rate, investors have already started associating the NAKD stock with a bearish trend, and the unimpressive fundamentals are painting a dim picture for the company’s overall outlook. Naked Brand Group (NAKD) needs to pull a rabbit (and a fashionable one) out of its hat and fast in order to retain customers and investors.