Naked Brand Group Limited Provides Corporate Update on Financial and Operational Results of Proposed Acquisition Target FOH Online Corp.
Strategic Pivot by FOH Online Corp. to Mobile Platform Combined With New Enhancements Drive 26% Growth in DTC E-Commerce Net Sales to $20.2 Million for the Trailing Twelve Months Ended June 30, 2018
SYDNEY--(BUSINESS WIRE)-- Naked Brand Group Limited (NASDAQ: NAKD), a global leader in intimate apparel and swimwear, has provided a corporate update on the financial and operational results of its proposed acquisition target, FOH Online Corp. (“FOH”), the exclusive licensee of the Frederick’s of Hollywood global online license.
FOH net sales for the trailing twelve months ended June 30, 2018 were approximately $20.2 million of direct to consumer e-commerce sales, a 26% increase as compared to $16.0 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 U.S. The brand’s rich history has led it to become one of the most recognized in the world.
“We are pleased to see that FOH Online Corp.’s sales have grown at such a rapid rate in response to key improvements made over the last year,” stated Justin Davis-Rice, Chief Executive Officer of Naked Brand Group Limited. “This is a clear indication that FOH’s strategic pivot to their mobile platform with multiple enhancements is not only driving improved customer retention, but also new sales.
“We are in the final stages of negotiating the terms of our proposed acquisition of FOH Online Corp. Assuming we are able to finalize terms and enter into a definitive agreement with FOH Online Corp., we will seek to close the transaction in the third quarter of 2018 and believe the integration into our operations would provide a strong platform to drive the next phase of growth of our e-commerce business and provide opportunities for operating synergies with our extensive wholesale and retail distribution channels,” concluded Mr. Davis-Rice.
About the FOH Online Corp. Transaction
The Company is currently seeking to acquire all of the outstanding common stock of FOH in exchange for both shares of the Company and the forgiveness of debt owed by FOH to the Company’s wholly-owned subsidiary, Bendon Limited. If acquired, the Company would control FOH’s existing license to develop and sell online intimates products, sleepwear and loungewear products, swimwear and swimwear accessories and costumes products under the Fredrick’s of Hollywood name. While the Company has conducted advanced negotiations with FOH, the Company has not entered into a definitive agreement for the acquisition of FOH and there can be no assurance that the acquisition will occur. The proposed transaction is subject to negotiating the terms of, and executing, a definitive agreement relating to the proposed transaction and obtaining various third-party consents (which the Company and the shareholder of FOH are in the process of seeking to obtain). Furthermore, the terms of the transaction are still subject to discussion and may be changed as a result of any material positive or adverse change to the business of either party. Accordingly, there can be no assurance that a transaction will be entered into or that the proposed transaction will be consummated.
About Naked Brand Group Limited:
Naked Brand Group Limited 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.
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 financial performance, future growth in our business, trends in our industry, product innovation 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 execute a definitive agreement with FOH when expected or at all; the possibility that there are changes or delays in the structure or timing of the proposed transaction between Naked and FOH; the risk that the projected value creation and efficiencies from the transaction with FOH will not be realized; our ability to complete the integration of the operations of Bendon Limited and Naked Brand Group Inc.; the risk that the projected value creation and efficiencies from the transaction with Bendon Limited and Naked Brand Group Inc. will not be realized; difficulties in maintaining customer, supplier, employee, operational and strategic relationships; the possibility that a robust market for our 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. Forward-looking statements speak only as of the date made. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the SEC, 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.
Source: Naked Brand Group Limited
Released July 26, 2018