Naked Brands faces $28 million loss in first half
Naked Brand Group reported a net loss of $28.7 million for the first half of the 2020 financial year, as the business goes through the implementation of a new direct-to-consumer business model.
However, EBITDA loss improved 44 per cent to $9.8 million on the same period in FY19.
According to Naked Brand chief executive Anna Johnson, the EBITDA result shows the strength of the brands new strategic direction.
The group runs the Naked, Bendon, Bendon Man, Davenport, Fayreform, Hickory, Lovable, Pleasure State, Heidi Klum Intimates, Heidi Klum Man, Heidi Klum Swim, and Fredericks of Hollowood brands.
Net sales also fell to $42.1 million, compared to the $56.8 million achieved during the same time in FY19. However, operating expenses decreased over the same period to $41.9 million, compared to $44.2 million.
“We’re excited about what’s to come and have some excellent plans in progress and on the horizon for our business,” Johnson said.
According to BusinessDesk, the business needs to raise a further $22 million to satisfy loan commitments to Bank of New Zealand, and although raised $48.8 million since the end of January, has seen its equity position reduced to just $4 million due to losses amounting to $151 million as of July 31.
During the first half, the business shut down its Sydney office, New York wholesale office, and its Los Angeles distribution centre, returning all functions to its head office of Bendon in New Zealand.
Additionally, it reviewed and renegotiated unfavourable contracts, reduced staff count by 67, and reviewed its e-commerce operations.
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