Today, investors in Naked Brand (NASDAQ:NAKD) and NAKD stock are seeing gains of 12% at the time of writing. Any double-digit day of gains is a good one for investors. Accordingly, many may be wondering why this stock is moving higher today.
After all, Naked Brand has been a retail stock that has lost momentum of late. Since running up to as high as $3.40 in late-January following the meme surge in retail stocks, shares of Naked Brand have settled down to the 50-cent level. Today’s move is large in percentage terms, but this stock remains approximately 85% below its January peak.
Well, the company has been plagued by declining sales and a painful restructuring away from its core retail base to e-commerce. E-commerce sales have risen for this retailer of women’s swimwear and intimates. However, these increases have not been enough to offset large losses from its core business.
However, today, the company made a key announcement. Let’s dive into what this announcement is, and why investors are bullish on the news.
NAKD Stock Soars on CFO Appointment
Today, Naked Brand announced it is bringing on Mark Ziirsen as the next CFO, replacing Cheryl Durose.
The move appears to have struck a chord with investors bullish on the company’s turnaround efforts. Mr. Ziirsen’s experience spans a range of corporate roles, with experience managing finance and IT restructuring and operational improvement efforts across a range of sectors.
From the company’s press release: “Much of Mark’s work has involved guiding high growth companies, which will be instrumental for the rapid acceleration of our e-commerce business and digital transformation. His M&A expertise will add significant value as we continue to pursue accretive acquisitions of high growth and cash flow positive businesses and invest in next generation technology.”
Those banking on a turnaround in NAKD stock appear to be assuaged by this move today.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.