Please ensure Javascript is enabled for purposes of website accessibility

Why Naked Brands Stock Surged Today

By Joe Tenebruso - Apr 19, 2021 at 6:05PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A new executive is joining the company's leadership team.

What happened

Shares of Naked Brands (NAKD) climbed 16.4% on Monday, after the swimwear and intimate-apparel maker announced the appointment of a new chief financial officer. 

So what

Mark Ziirsen will replace Cheryl Durose as Naked Brands' new CFO. Ziirsen has three decades of experience in financial and operational leadership roles in a broad range of industries, including retail and technology. He will be tasked with shepherding Naked Brands' new online strategy.

"Much of Mark's work has involved guiding high growth companies, which will be instrumental for the rapid acceleration of our e-commerce business and digital transformation," CEO Justin Davis-Rice said in a press release.

A person is pointing to an upwardly sloping line that's above two flatter lines.

Investors bid up Naked Brands' stock price on Monday. Image source: Getty Images.

Interestingly, Davis-Rice said that Ziirsen's corporate strategy and mergers and acquisition expertise will bolster Naked Brands' hunt for "acquisitions of high growth and cash flow positive businesses." Davis-Rice's comments suggest Naked Brands may soon deploy some of the roughly $270 million it raised via share offerings in recent months. 

Now what

Naked Brands has become a popular stock among traders on Reddit and other social media sites. That helped to drive its stock price from less than $0.20 on Dec. 31 to as high as $3.40 by Jan. 28. Its shares retreated as the trading frenzy subsided, and they're now down more than 80% from their highs despite today's gains.

Still, Naked Brands sold shares to investors along the way. The company's now cash-rich balance sheet should give it the capital it needs to fund the buildout of its e-commerce platform. And with Ziirsen's hiring, investors appear to be growing more optimistic that Naked Brands' online strategy could prove viable.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Naked Brand Group Limited Stock Quote
Naked Brand Group Limited

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/07/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.