Naked Brand Group Ltd (NASDAQ:NAKD) jumped 15% last week after the company announced results from a recent shareholder vote meeting. The cote was to permit the company to continue its digital transformation involving the divesture of the Bendon business.
A press release from Naked Brand indicated that shareholders approved the move to transform the business into an e-commerce operation.
The company indicated that the change will be approved on Friday the coming week. Once the transformation is complete, Naked Brand will become a top e-commerce enterprise in the intimate apparel sector. Most importantly, the divesture will generate $270 million in cash at hand without any debt. The company’s CEO Justin Davis-Rice said that with the cash on hand and no debt, and a re-energized management team, they are excited to execute the business strategy that will drive revenue growth, this positive free-cash-flow.
Notably, Naked Brand one of the Reddit-loved meme stocks meaning the volume trade and price can get out of hand sometimes. Naked Brand stock is worth keeping an eye on in the coming weeks.
Writing for business and finance publishers has become his passion over the last decades after he completed a master’s degree in Financial Management. Sharing some opinions and forecasts to thousands of readers is a routine job for him but he never promises to invest in one stock.