Naked Brand Group Ltd (NASDAQ: NAKD) is having an incredibly strong start to the trading session in the pre-market hours this morning, and for good reason. The company announced that it entered into an agreement with Costco, placing its products on even more retail shelves after announcing the recent deal with CVS. Today, we’ll talk about:
- The agreement;
- what we’re seeing from NAKD as a result; and
- what we’ll be watching for ahead.
NAKD Announces Agreement With Costco Australia
As mentioned above, Naked Brand Group is having an incredibly strong start to the trading session this morning after the company announced news surrounding an agreement with Costco. In a press release issued early this morning, the company announced that it has launched Bendon’s new mass-market diffusion program with Costco Australia, a leading membership warehouse operator in Australia.
In the release, NAKD said that the program integrates Bendon’s best-selling brief design and offers consumers a compfortable, value-oriented pack of five briefs at a retail price of AU$25.99. NAKD said that the new test program is expected to be stocked at 11 Costco locations in Australia by the end of November. In a statement, Justin Davis-Rice, CEO at NAKD, had the following to offer:
We are pleased to announce the launch of this new diffusion program with Costco Australia, a continuation of our goal to grow and partner with industry leading companies worldwide… Approximately 40% of our product sales are derived from basic item replenishment with wholesale partners such as Costco. Bendon’s sourcing and outlet store model molds well with the wholesale model and we look forward to a strong working relationship with Costco.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Naked Brand Group, the news that was released proved to be overwhelmingly positive. After all, the new program puts the company’s products in 11 popular stores in Australia, and should the test go well, that partnership is only likely to expand. So, it comes as no surprise to see that excited investors are sending the stock on a run for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:02), NAKD is trading at $4.65 per share after a gain of $0.26 per share or 5.92% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on NAKD. In particular, we’re interested in following the story surrounding the company’s continued expansion of its retail footprint. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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