Naked Brand Group, ticker symbol NAKD, with a diversified portfolio of brands, has become a leading intimate apparel company. Founded in 1947, Naked Brand Group is a swimwear company that designs, manufactures and markets 8 licensed and company-owned brands with a range of customers and market segments. Their brand collectioninclude Bendon, Bendon Man, Davenport, Fayreform, Hickory, Lovable, Pleasure State and Fredericks of Hollywood. NAKD is most known forits commitment to integrate innovative design and technology within product and brand development.
NAKD’s Management Team:
- CEO Naked Brand Group: Justin Davis-Rice joined the board of directors of Naked since January 2017. transformed the company by reorganising and reengineering key functional and operational aspects of the company, such as supply chain, human resources, design and development, manufacturing, wholesale, and retail sales.
- CEO Bendon Limited: Anna Johnson has over 25 years of experience leading development in a range of markets, including consumer electronics, outdoor adventure, and intimate clothing. Ms. Johnson led Bendon’s retail channel as EGM, generating 30 percent plus returns in several women’s categories in a row.
- General Manager – Logistics: Lyle Cardy. Mr. Cardy’s extensive expertise in all areas of logistics is expected to help Naked’s global operating platform achieve organisational synergies.
- CFO: Cheryl Durose. Ms. Durose has over 20 years of experience working in high-profile organisations in key finance, strategy, and business relationship positions. Ms. Durose earned her bachelor’s degree in science with honours from Salford University in the United Kingdom. The Chartered Institute of Management Accountants has accredited her.
NAKD’s Key Data:
- Sector: Consumer Non-Durables
- Industry: Apparel
- Market Cap: 473,379,617
- Share Volume: 75,041,140
- Average Volume: 247,085,602
- NA-KD | Shop Women’s Clothes & Fashion online. Their easily accessible website enables you to see what’s new. It also allows the users to locate what they’re looking for based on their own certain requirements on a clothing, such as its color, size and brand, etc, making it easier and faster to identify what they’re looking for.
- Instagram: @nakdfashion
- Twitter: @NAKDfashion
- Facebook: NA-KD.com
NAKD uses catchy phrases and captions on their posts to attract viewers. They display models wearing the latest arrivals with a bit of appealing captions to persuade their clients into checking them out. They’re pretty creative and persuasive when it comes to keeping their clients updated with what’s going on. They have 7k followers on Twitter, 694k likes on Facebook and 3 million followers on Instagram. It has the most reach on Instagram with clients continuously responding to what’s being updated compared to Facebook and Twitter, which are a bit less engaging. Their instagram account has an engagement rate of 0.48% and average interactions per post of 15,216 likes and 35 comments.
This article was able to conclude information based on the company’s verification in these search engines:
- Yahoo finance
- OTC Markets
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An Authorized Agreement for $100 Million Private Placement
On February 5th 2021, the worldwide pioneer in lingerie and swimwear, NAKD signed a definitive agreement with approved investors for a private placement of restricted ordinary shares and warrants for a total gross proceeds of approximately $100 million. Given the decision, the company’s technology solutions will be improved and the existing digital footprint will be increased with the help of the proceeds. The company’s transition to a pure play e-commerce platform business will probably be enhanced by the recent capital raising activities, according to the company’s anticipation.
The ordinary shares will be sold for $0.93 per share. Each investor will also obtain a warrant to buy 100% of the ordinary shares for which they have subscribed. The warrants will have a $1.13 per share exercise price and will be valid for five years from the date of issuance. The number of shares covered by the warrants as well as the exercise price will be adjusted for stock splits, stock combinations, and other transactions that affect the total share capital. Moreover, the warrants will have a cashless exercise clause, which allows them to be exercised for a number of shares equal to the Black-Scholes value divided by the closing market price two trading days prior to the exercise date (subject to a floor price as stated in the warrants), where the Black-Scholes value is determined using some specified inputs. After the resale of the ordinary shares sold in the private placement, NAKD announced it will be filing a registration statement to cover for those resales and make them issuable based on exercise of the warrants on the business day following the closing. Furthermore, investors would not be required to purchase securities if doing so will result in a benefit of more than 9.9% of the then issued and outstanding ordinary shares on the closing date.
It is anticipated that the private placement will close during the week of March 1, 2021. If the company does not receive non-objection from Nasdaq by March 6, 2021, the Investors will have the right to terminate the definitive agreement if the market price of Ordinary Shares closes below $0.618, or if the closing does not occur on or before March 17, 2021.
“This additional capital will further transform our balance sheet and now with $200 million in cash and no debt, this uniquely positions Naked to pursue strategic acquisitions that provide accretive value to shareholders,” stated Justin Davis-Rice, Chief Executive Officer of Naked Brand Group Limited.
Naked Brand Group to maintain NASDAQ Minimum Bid Price Rule Compliance
On March 11, 2020, the Company was informed by Nasdaq that it had failed to reach the requirement placed by the List Rules of Nasdaq Stock Market, which is to have the ordinary shares maintain a minimum bid price of $1.00 over the previous 30 consecutive business days. They were given 180 calendar days to restore compliance with the minimum bid price provision, according to the notification letter. Given the impact of COVID-19, Nasdaq extended the deadline for compliance from April 16, 2020 to June 30, 2020. Nasdaq stated that the Company was liable for an additional 180 calendar days, or until May 24, 2021, to regain compliance after the original 180-day duration expired.
If the company regains compliance with Rule 5550(a)(2), it will be essential to maintain a minimum closing bid price of $1.00 or more for 10 trading days in a row. The Company has regained compliance with Nasdaq’s Listing Rule, and the matter is now closed, as the closing bid price of the Naked Brand Group’s ordinary shares has been at US$1.00 per share or greater for at least ten consecutive business days.
NAKD focuses on Expanding E-commerce Business rather than Traditional Brick-and-Mortar Operations
Recently, NAKD decided to shift its focus to e-commerce business. The brick-and-mortar stores are no longer as operative and effective as the rapidly growing e-commerce. The decision likely occurred due to the pandemic that forced shut down thousands of physical operations. The company anticipates a global e-commerce sales of $6.5 trillion if it continues expanding revenues and profits in e-commerce.
As a result, any investors considering NAKD stock can at least point to the company’s decision to close its less-profitable brick-and-mortar locations as a response to their concern. Furthermore, NAKD is able to generate $20 million annual revenue in the U.S from its online operations alone, thus, the company may not need to worry about completely neglecting its operations in physical stores.
Despite the skepticism of traders and investors concerning whether or not NAKD stock moves upward, NAKD was able to promise that it will be able to generate greater amounts of revenues thanks to its decision of shifting more of its focus to online operations than to physical ones, which may result in a rise of stock price. In addition, it was smart of the company to respond to today’s change of business activities concerning the rapid use of online operations to the extent that physical ones are no longer gaining much attention.
Where is NAKD headed to?
It is quite possible that a worldwide pioneer in lingerie and swimwear like NAKD is heading to a promising future. Indeed, the company faced unfortunate challenges while trying to remain in the Nasdaq Stock Market, but later on it was able to regain compliance with it. Moreover, its focus on generating more revenues and profits with the help of expanding its online operations might be able to attract more traders and investors, which may then result in more successful growth in the business.