Naked Brands (NASDAQ:NAKD) Stock Continues to Trade In a Tight range: What Next?
Apparel and swimwear seller focused on United States, Naked Brands (NASDAQ:NAKD) has been in the reckoning in last two quarters for Reddit community. The share witnessed low of 7 cents in November but by end of January 2021, it went up to $3.40 per share. While profit booking is the reason for volatility, the company harnessed rally to get funds from secondary markets. The shares have now settled into consolidation mode.
It is estimated that the lingerie market in North America is about $9.5 billion in 2018, with growth expected to be 9.9% CAGR till 2027. The firm had announced transformation plan in January and is focusing on e-commerce model as well as divesting unprofitable brick-and-mortar operations.
In the first quarter, the firm was on raising funds and had $270 million in cash with zero debt. The company had appointed Mark Ziirsen as the company’s chief financial officer in April and hopes that his expertise will add significant value.
The firm had eight company-owned and licensed brands in quarter one. It is estimated that the company’s total liquidity buffer is more than $500 million. If the company delivers positive results or quality acquisitions, it can give manifold returns to investors. Some exposure to the stock can be considered.
Market Reaction:
On Monday, NAKD stock fell 1.90% at $0.5779 with more than 21.81 million shares, compared to its average volume of 90.45 million shares. The stock had moved within a range of $0.5670 – 0.5917 after opening the trade at $0.5920. Over the past 52-week, the stock has been trading within a range of $0.0661 – 3.4000.
