Naked Brand in expansion mode with a planned two-year roll-out of 20 retail and outlet stores

Naked Brand Group Ltd (NASDAQ:NAKD), a designer of intimate apparel and swimwear, announced Tuesday that it had signed leases for new outlets across Australia and New Zealand to kick off the first phase of its ambitious two-year rollout of 20 additional stores.

Three new sites have been confirmed already in New Zealand which include Northlands, Invercargill and Manukau. Another site is being planned in Perth’s new Direct Factory Outlet owned by Australia’s Vicinity Centres Limited (ASX:VCX), which has a successful track record in operating factory outlets.

The company said once up-and-running the total incremental revenue per store is projected to be approximately US$650,000 with the four-wall contribution projected to be more than 20%. The group calculate four-wall contribution, or net profit percentage from a store as gross margins minus all store operating costs.

“For many years, the outlet channel has been a significant contributor to the overall channel strategy for Naked,” said Naked Brand Group CEO Justin Davis-Rice.

“Bendon’s portfolio of iconic, heritage brands carry significant equity within the Australian and New Zealand market. Outlet stores with exclusive product solutions service a different consumer and operate as a conduit to exit excess inventory, avoiding discounting below cost and preserving margin. They are highly efficient and deliver stable returns, so they continue to be an area of excitement for the group,” he added.  

Shares of the Naked Brand were up 0.14% to US$4.08.

READ: Shares of New York fashion brand Naked rocket on Bendon merger

The Naked Brand Group network currently consists of 33 stores in New Zealand and 25 in Australia. These stores contribute nearly 40% of overall sales and around US$650,000 in annualized revenue per store, complimenting wholesale distribution across New Zealand.

A further 16 sites have been identified and are expected to open by 2020.

In June, New York-based fashion brand Naked Brand Group Inc. completed a merger agreement with Bendon Ltd., a New Zealand-based marketer of intimate apparels and swimwear.

Under the terms of the merger agreement, Naked and Bendon became wholly-owned subsidiaries of a newly formed company, Bendon Group Holding Ltd., which has been renamed Naked Brand Group Ltd. (Holdco).

The merger creates an intimate apparel, swimwear and sleepwear powerhouse.

Holdco’s shares now trade on the Nasdaq under the ticker symbol NAKD.

Contact Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive 

Story by ProactiveInvestors