(Filed Under wholesale Lingerie News). Naked Brand Group sales more than doubled to $361,043 in its second quarter ended July 31, up from $164,986 in the same period last year. Meanwhile the company reported a net loss for the period of $3.140 million, down from a loss of $29.033 million for the same period last year.
As it released its results, Naked recited a recent series of developments including “the launch of our first collections of intimate apparel, sleepwear and loungewear for women; a license agreement with NBA Champion Dwyane Wade; the closing of an “offer to amend and exercise outstanding warrants with aggregate gross proceeds of approximately $2.34 million;” a 1-for-40 reverse stock split; and the appointment of Jesse Cole as a director. (All news except for the last item has previously been reported in BODY).
Despite the recent infusion of cash, the company cautioned that “expects to incur significant further losses in the development of its business,” and said that again, in the future it “will be required to obtain the necessary financing to pursue its plan of operation. Management plans to obtain the necessary financing through the issuance of equity and/or debt.”
Looking ahead, the firm reported, “We plan to introduce new men’s sleep and loungewear products through retail partners and direct online starting in September 2015. Our women’s collections currently encompass primarily lounge and sleepwear products, and will grow to include a broad range of intimate apparel products including bras and panties in early 2016. We currently anticipate quarter over quarter sales growth for these products as we increase our distribution channels and partners and expand our direct sales online through new marketing and brand awareness initiatives. We expect our women’s innerwear, loungewear and sleepwear products will be an increasingly important component of our continued sales growth. In the future, we plan to extend the Naked brand to other apparel product categories including swimwear and activewear.”
Discussing its profitability in the most recent quarter, Naked reported “we realized a gross margin of 38%, compared to (180)% in the quarter ended July 31, 2014. Our positive margins in the current quarter are a result of production efficiencies and increased direct to consumer sales outlined above, which generate higher margins. The negative gross margin in the comparative period was due to a large write down of old inventory as a result of a new core management team and manufacturing partnership introduced during that period, which triggered a transition to production changes.”
The company also reported that in June it entered into a factoring agreement with Capital Business Credit LLC, a New York City-based firm.
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