Naked Reports Bigger Loss On Lower Sales

Image on Naked’s Frederick’s website.

Naked Brand Group reported a total comprehensive loss of 72,830,000NZD (New Zealand dollars, about $52.4 million at today’s exchange rates) on total revenue of 80,039,000NZD (about $57.6 million) for the twelve months ended January 31, 2021.

Last year sales were higher but the loss was smaller. The company reported a total comprehensive loss of 52,174,000NZD (about $37.5 million) on revenue of 90,065,000NZD (about $64.8 million) for the year ended January 31, 2020.

The company has reported an annual loss every year since the twelve months ended June 30, 2016.

Recently the company divested itself of what it referred to as its “unprofitable bricks-and-mortar operations,” the 60 Bendon shops in Australia and New Zealand it used to operate. That move, it said, will allow it “to focus exclusively on the planned rapid acceleration of its e-commerce business.” Currently it licenses the Frederick’s of Hollywood name from Authentic Brand Group to sell “intimates products, sleepwear and loungewear products, swimwear and swimwear accessories products, and costume products.”

With several recent cash infusions and no debt, Naked CEO Justin Davis-Rice boasted, “we are strategically positioned to pursue accretive acquisitions of high growth and cash flow positive businesses.” — NM