Naked Brand Group Limited Completes Acquisition of Fredericks of Hollywood Global E-Commerce Licensee, FOH Online Corp.
November 15 2018 - 8:31AM
Naked Brand Group Limited (NASDAQ: NAKD), a global
leader in intimate apparel and swimwear (“Naked”), has closed its
previously announced acquisition of the shares of FOH Online
Corp. (“FOH”), the exclusive licensee of the Frederick’s of
Hollywood brand for global e-commerce business.
The acquisition of FOH will secure the revenue
Naked currently books under a sublicense with FOH. As a result of
the acquisition, Naked will control FOH’s exclusive license with
the brand owner, Authentic Brands Group, which runs through 2020
and may be extended at FOH’s option through 2070. The Frederick’s
of Hollywood e-commerce business generated net sales of
approximately $20.0 million for the trailing twelve months ended
June 30, 2018, a 22% increase as compared to $16.5 million for the
trailing twelve months ended June 30, 2017.
Since 1946, Frederick's of Hollywood has set the
standard for innovative apparel, introducing the push-up bra, the
padded bra, and black lingerie to the United States market. The
brand’s rich history has led it to become one of the most
recognized in the world.
Financial Outlook
Management expects the Frederick’s of Hollywood
e-commerce business to generate $25.0 million in revenue for the
fiscal year ended January 31, 2019, achieving double digit sales
growth compared to the fiscal year ended January 31, 2018 and
representing a positive contribution to the Company’s overall
performance.
Management Commentary
“The Frederick’s of Hollywood e-commerce
business is an ideal fit with Naked,” said Justin Davis-Rice, Chief
Executive Officer of Naked Brand Group Limited. “We are pleased to
see that Frederick’s of Hollywood sales have grown at such a rapid
rate in response to key improvements made over the last year. This
is a clear indication that the strategic pivot to make Frederick’s
of Hollywood a mobile platform with multiple enhancements is not
only driving improved customer retention, but also new sales. We
believe the acquisition provides a strong platform to drive the
next phase of growth of our e-commerce business and offers key
opportunities for future operating synergies with our extensive
wholesale and retail distribution channels,” concluded Mr.
Davis-Rice.
Terms of the Deal
The purchase price was $18.2 million, consisting
of approximately 3.8 million ordinary shares of Naked priced at
$2.20 per share and the forgiveness of $9.9 million of long-term
debt held by Naked.
About Naked Brand Group
Limited
Naked Brand Group Limited (NASDAQ: NAKD) is a
leading intimate apparel and swimwear company with a diverse
portfolio of brands. The company designs, manufactures and markets
a portfolio of 11 company-owned and licensed brands, catering to a
broad cross-section of consumers and market segments. Brands
include Naked, Bendon, Bendon Man, Davenport, Fayreform, Hickory,
Lovable, Pleasure State, Heidi Klum Intimates, Heidi Klum Man,
Heidi Klum Swim. Naked Brand Group Limited products are available
in 44 countries worldwide through 6,000 retail doors, a growing
network of e-commerce sites and 61 company-owned Bendon retail and
outlet stores in Australia and New Zealand. Brands are distributed
through premier department stores, specialty stores, independent
boutiques and third-party e-commerce sites globally, including
Macy’s, Nordstrom, Saks Fifth Avenue, Harrods, Selfridges, Amazon
and ASOS among others. For more information please visit
www.nakedbrands.com.
Forward-Looking Statements
This communication contains "forward-looking
statements" within the meaning of the safe harbor provisions of the
U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements include all statements that are not
historical facts. Such statements may be, but need not be,
identified by words such as “may,” “believe,” “anticipate,”
“could,” “should,” “intend,” “plan,” “will,” “aim(s),” “can,”
“would,” “expect(s),” “estimate(s),” “project(s),” “forecast(s)”,
“positioned,” “approximately,” “potential,” “goal,” “pro forma,”
“strategy,” “outlook” and similar expressions. Examples of
forward-looking statements include, among other things, statements
regarding future or projected financial performance, annualized
financial performance, future growth in our business, trends in our
industry, product innovation, acquisition synergies and
efficiencies, and operational expansion. All such forward-looking
statements are based on management’s current beliefs, expectations
and assumptions, and are subject to risks, uncertainties and other
factors that could cause actual results to differ materially from
the results expressed or implied in this communication. Among the
key factors that could cause actual results to differ materially
from those expressed or implied in the forward-looking statements
are the following: our ability to integrate the operations of the
FOH business; the risk that the projected value creation and
efficiencies from the transaction with the FOH will not be
realized; difficulties in maintaining customer, supplier, employee,
operational and strategic relationships; the possibility that a
robust market for Naked’s shares may not develop; our ability to
raise additional financing; our ability to anticipate consumer
preferences; and the other risks and uncertainties set forth under
“Risk Factors” in our Annual Report on Form 20-F for the fiscal
year ended January 31, 2018. Further, investors should keep in mind
that our revenue and profits can fluctuate materially depending on
many factors. Accordingly, our revenue and profits in any
particular fiscal period may not be indicative of future results.
We are under no obligation to, and expressly disclaim any
obligation to, update or alter our forward-looking statements,
whether as a result of new information, future events, changes in
assumptions or otherwise, except as required by law.
Investor Contact
Joel PrimusNaked Brand Group Limitedjoel@thenakedshop.com
Chris Tyson MZ North
Americachris.tyson@mzgroup.us949-491-8235
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