Naked Brand (NASDAQ:NAKD) stock is on the rise Thursday after announcing major plans to change its business.
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Here’s everything investors need to know about Naked Brand’s newest business plan.
- Starting off, the company has announced that it will be shifting its focus to e-commerce and its online platform.
- To go along with this, NAKD will be divesting its Bendon subsidiary, which handles its physical retail locations.
- This will have it selling the business off to executives of the company.
- The agreement will allow it to continue to earn a percentage of profits generated by Bendon.
- Naked Brand then expects to use funds from this sale to further the growth of its e-commerce network.
- It will do this by developing better features that benefit users of its service.
- That includes body scanning tech, as well as artificial intelligence to assist customers with their online shopping.
- The company also notes that it will be acquiring other e-commerce brands to expand its own platform.
- Naked Brand will continue to focus on offering intimate apparel as it expands its business.
- It points out that its online business generates roughly $20 million in annual revenue in the U.S.
- The company’s expansion plans are in preparation for a stronger shift to online shopping.
- It points to eMarketer’s prediction that 22% of all shopping will take place online by 2023.
- That would have $6.5 trillion in revenue being generated from online sales globally.
NAKD stock was up 10.3% as of Thursday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
