Naked Brand Group (NASDAQ:NAKD) has announced its FY2019 financial results and also provides business updates. The company has also received notification that it has a 180 day extension period for it to comply with the minimum price per share of $1.00 to list on the exchange.
FY2019 financial results
The company reported a14.8% drop in net sales compared to last year. Naked Brand reported revenue of $77.4 million with the net loss being $34.0 million or $1.39 per share compared to 2018 when the net loss was $25.8 million or 1.24 per share. Net sales suffered because of stock supply issues and exit from the UK and EU markets and well as they move to end the particular wholesale relationships in the US Market. The company increased gross margin by 33.5% as a percentage of revenue and this was a result of the change in the sales model to direct-to-consumer from wholesale.
Ann Johnson the CEO of Naked Group indicated that FY2019 was a foundation-building year and setting stage for more growth next year and beyond. He added that the company has improved its balance sheet while enhancing its eCommerce initiatives as well as laid the groundwork for a strong presence in retrial stores. This includes corporates stores as well as those of partners.
Recently the company appointed David Anderson as the CFO to augment the company’s push regarding its new strategic path. The company is exploring strategic alternatives to generate liquidity form some of its business segments within its portfolio to improve its balance sheet and enhance growth. In March, the company completed strategic financing of $3.9 million and debt restructuring of $5.4 million to fortify its balance sheet.
The company completed the acquisition of Fredericks of Hollywood Online Corp and also completed a merger with Bendon limited.
Nasdaq has given the company and extension of 180 days to comply to continue being listed on the Nasdaq Capital Market. If before Feb 3, 2020, the company’s shares close at $1.00 for ten consecutive days then Naked Brand will regain compliance and the matter closed.