Naked Brand Group Inc (NASDAQ:NAKD) shares have started to show renewed strength in recent days after successfully testing and holding key support in the $1.40 per share area. The key to understanding the past, present, and future for this stock is tied up in a progressing merger agreement with iconic New Zealand apparel company Bendon Limited.
As investors and traders wait for more information on the specific terms to be mobilized in that agreement, the stock remains bound in a tight and narrow trading range. However, if recent action is any indication, there is a supportive bid lying in wait underneath the stock that should provide current shareholders with some degree of confidence.
Naked Brand Group Inc (NASDAQ:NAKD) promulgates itself as an apparel and lifestyle brand company that is currently focused on innerwear products for women and men. The company manufactures and sells men’s and women’s underwear, intimate apparel, loungewear and sleepwear through retail partners and direct to consumer through an online retail store.
Naked Brand Group Inc. designs, manufactures, and sells men’s and women’s underwear, intimate apparel, loungewear, and sleepwear products in the United States and Canada. It offers various innerwear products for men, including boxer briefs, trunks, briefs, undershirts, T-shirts, lounge pants, lounge shorts, and robes; and loungewear and sleepwear products for women, such as boyshorts, hipsters, lounge pants, camisoles, tank tops, pajamas, chemises, and sleepshirts primarily under the Naked brand name, as well as French terry robes, Alpaca throws, and Double Gauze woven cotton sleepwear.
The company sells its products to consumers and retailers through wholesale channels; and direct-to-consumer channel, which consists of an online e-commerce store, wearnaked.com, as well as through various online retailers and department stores.
Naked Brand Group Inc. is headquartered in New York, New York.
According to company materials, “Naked was founded on one basic desire – to create a new standard for how products worn close to the skin fit, feel, and function. Currently featuring an innovative and luxurious collection of innerwear products, the Company plans to expand into additional apparel and product categories that exemplify the mission of the brand, such as activewear, swimwear, sportswear and more. Naked’s women’s and men’s collections are available at www.wearnaked.com, as well as through some of the leading online retailers and department stores in North America, including Nordstrom.com Bloomingdale’s, Dillard’s, Soma.com, SaksFifthAvenue.com, Amazon.com, and BareNecessities.com, among others. Renowned designer and sleepwear pioneer and Chief Executive Officer, Carole Hochman, leads Naked from its headquarters in New York City.”
Currently trading at a market capitalization of $15.3M, NAKD has a stash ($2.2M) of cash on the books, which stands against virtually no total current liabilities. NAKD is pulling in trailing 12-month revenues of $2.3M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 12.6%.
Bendon is a global leader in intimate apparel and swimwear renowned for its best in category innovation in design, and technology and unwavering commitment to premium quality products throughout its 70-year history. Bendon has a portfolio of 10 highly productive brands, including owned brands Bendon, Bendon Man, Davenport, Evollove, Fayreform, Hickory, Lovable (in Australia and New Zealand) and Pleasure State, as well as licensed brands Heidi Klum Intimates and Swimwear, Stella McCartney Lingerie and Swimwear and Frederick’s of Hollywood Intimates and Swimwear.
