STOCKS TELEGRAPH

Tag: Naked Brand Group

  • Naked Brand Group Ltd. (NAKD) Stock Prices Trending Down as Pandemic Continues to Devastate the Economy

    Naked Brand Group Ltd. (NAKD) Stock Prices Trending Down as Pandemic Continues to Devastate the Economy

    Naked Brand Group Limited (NAKD) stock prices were down by 2.60% as of market close on June 15th 2021, bringing the price per share down to USD$0.7169 at the end of the trading day. Subsequent pre-market fluctuations saw the price fall by another 1.45%, bringing it to USD$0.7065.

    New e-Commerce Status Quo

    with the onset of the global coronavirus pandemic having devasted the retail space with the forced closure of brick-and-mortar stores, buyers and sellers have turned to e-commerce. NAKD, too, has followed this trend as a means of circumventing pandemic-related regulations and government-mandated restrictions. The company went so far as to completely dispose of its brick-and-mortar operations on account of their lack of profitability, as per an announcement near the start of the fiscal year 2021.

    Bendon Ltd. Divesting

    The drastic restructuring efforts culminated in the signing of a nonbinding and non-exclusive term sheet that would see the divestment of NAKD from its subsidiary Bendon Ltd. The subsidiary will be divested to a group composed of existing NAKD management, as the company focuses its attention exclusively on its strategy to facilitate the rapid acceleration of the proliferation of its e-commerce business.

    Reallocation of Resources

    Subsequent to the completion of the divestiture, the allocation of resources and efforts towards the development of the Frederick’s of Hollywood online business has taken top priority. NAKD has also indicated plans to capitalize on the strategic acquisitions available in the e-commerce market space. This is done in the hopes of not only consolidating the existing online business but facilitating the additional generation of cross business operational synergies.

    Scope of e-Commerce Business

    Recent capital generation has had the funds deployed for complimentary growth business in the e-commerce sector, which boasts high margins. This move could also see future investments in technologies to better serve customers with a positive experience of the company’s online offerings. The company finds itself with unprecedented capital to invest where it sees fit, given the absence of the unprofitable Bendon business leeching capital to keep it afloat amid consistent and significant losses.

    Future Outlook for NAKD

    After the completion of the divesting project that was in the works for a very long time and presented many obstacles to the management team from an operational and financial standpoint, the company is poised to capital on its newfound weightlessness. With a strong balance sheet, no reported debt, and an operating model that is asset-light, the company forecasts continued success in a very favorable M&A environment in global e-commerce businesses. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.

  • 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.

  • Naked Brand Group Limited (NASDAQ: NAKD) rising above the clouds in After-Market session

    Naked Brand Group Limited (NASDAQ: NAKD) rising above the clouds in After-Market session

    In the AH session, there isn’t really any company-specific news that prompted the share price of Naked Brand Group Limited (NASDAQ: NAKD) to rise today, and investors will want to take that as an exciting indication.

    Though on November 27 2020, Naked Brand Group Limited (NASDAQ: NAKD), a world leader in intimate garments and swimwear, has obtained approval from the Nasdaq Stock Market Listing Qualifications Department that an extended 180-day time has been given to the firm, or until May 24, 2021, to restore compliance with the minimum $1.00 bid price per share provision of Nasdaq’s Marketplace Regulation 5550(a) (2).

    Nasdaq has agreed that to regain compliance, the Corporation is liable for an extended duration of 180 calendar days or until May 24, 2021. The decision of Nasdaq shall be dependent on the Company meeting the continued listing condition for the market valuation of publicly owned securities and all other relevant initial listing conditions in the Stock Market, except for the bid price requirement, and the Company’s written notice of its intention to resolve the deficiency during the second compliance period by effecting a reverse split inventory. Suppose the closing bid price of the Company’s security is at least $1 per share for a minimum of 10 consecutive business days at any point during this additional period. In that case, Nasdaq will have written proof of compliance, and this matter will be closed.

    This latest Nasdaq announcement has no immediate impact on the listing or exchange of the firm’s common stock, which will continue to trade under the symbol ‘NAKD’ on the Nasdaq Share Exchange.