Naked Brand (NAKD) stock has continued to fall over the past two months. Despite the stock was favored by retail investors in January, investor's eyes on the company's core business finally. As we all know, almost all brick-and-mortar stores were impacted by the pandemic over the past year, NAKD is no exception. The company is currently looking for a new business model to save its fate, but the question is.
The company has raised hundreds of millions of dollars from its stock market which has made them to rethink its strategy planning. The board of the company previously said that it will deploy its capital in complimentary growth businesses in the high margin e-commerce sector. This could also involve investment in technologies that strengthen the Company’s offering and customer experience, that could include but not be limited to the e-commerce platform, body scanning and artificial intelligence.
It sounds like good, but the question is that there is a more intense competition in e-commerce sector, the company may bring interesting shopping experience with some new technologies, but sales growth requires large-scale users to support it. Can Naked do it?
If it can, there is no problem with an increase of its stock, but it take time to prove. In addition, the company currently faces the risk of its stock being delisted from the Nasdaq, it needs to do some exciting things as soon as possible with its cash, if not, its shares may fall further.
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