Naked Brand Group Inc (NASDAQ:NAKD) shares have been grinding sideways above major moving averages in a potential bullish breakout pattern while the market awaits final details on the company’s historic merger with New Zealand iconic clothing brand Bendon Group. Share strength has been supported by positive technicals, a strong balance sheet (over $2.2M in cash against no current liabilities), and excitement about the coming merger.
The company’s most recent substantive announcement noted that it, along with its merger partner Bendon Group Holdings Limited, has entered into a second amendment to the Agreement and Plan of Reorganization wherein, Naked stockholders will, among other things, receive approximately 9.0% of the outstanding ordinary shares of Holdco on a fully diluted basis, subject to certain adjustments set forth in the Amended Merger Agreement, upon closing of the merger.
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%.
On the new deal, Carole Hochman, Naked’s Chief Executive Officer and Chief Creative Officer, stated, “I am proud of the hard work and continuous effort that our team has put in to this amended merger agreement with Bendon. We continue to work towards finalizing the registration statement, which remains subject to the SEC’s review, comment and approval process. We believe that these amendments to the Merger Agreement provide additional benefits for both our stockholders and the go-forward business.”