There have been a number of unheralded stocks which have come into prominence due to the meme stock rally that has been unleashed in the markets this year. One of the stocks which has benefitted considerably due to the meme stock rally is the intimate apparent company Naked Brands Group (NASDAQ:NAKD).
However, at the same time, it should be noted that the meme stock rally cannot last forever and ultimately the long term prospects of a stock can only be judged from the nature of its business. The company was clever during the remarkable rally and issued a huge amount of stock by way of which it cleared its debts and also transformed its business.
Naked Brands has now transformed into a fully e-commerce operation and while that is an important step for the company, there are certain challenges that need to be taken into consideration. The intimate apparel e-commerce market is highly competitive and it is expected that the company’s brand Frederick’s of Hollywood is going to take its time before becoming an established player. The company will have to work pretty hard to fight the competition and hence, any kind of turnaround might take Naked Brands many years.