Naked Brand Group partners with CVS Health and now the stock is soaring. At press time, the stock is up more than 30%.
Naked Brand Group Partners with CVS Health
On Tuesday, Naked Brand Group announced that Bendon Limited, its subsidiary, has teamed up with CVS Health Corporation, a Woonsocket, Rhode Island-based company.
The reason? To bring the Heidi Klum Intimates Solutions line to stores in the United States. Specifically, to 4,000 different locations in the US.
If you’re interested in retail, you’ll understand why this news is so huge. Same goes for anyone interested in fashion. However, if you’re like me, someone who cares for neither, the importance of this partnership is still visible.
Why is this Big News?
First, Heidi Klum is a successful supermodel; she has hundreds of fans in the United States. Living in an age of Instagram, all Klum has to do is post a photo of her products in a CVS Health location, and the aspiring models will come running.
Second, her line (which has around 20 products) will be sold in the cosmetics department. This is important. It’s because, according to Naked Brand Group, the cosmetics department sees “the highest foot traffic of any department” within a CVS Health store.
The Market Reacts
So, Naked Brand Group partners with CVS Health, but how are people taking it?
For Naked Brand (NASDAQ:NAKD), the answer is quite well. As of 2:31 p.m., the stock is trading at $5.730, which puts it up 38.07%. There’s still time in the trading day, too—can it push past 40%?
As for CVS Health (NYSE:CVS), the company is trading down on the New York Stock Exchange. As of right now, CVS Health is down 2.80%.
Even though the CVS Health stock appears to be indicating otherwise, I would say that the markets are pleased with the news of Naked Brand Group partnering with CVS Health.
Sure, shares of Naked Brand are down almost 43% this year, but bringing the Heidi Klum Intimates Solutions line to more than a 1,000 stores in the United States is a smart move.
First, it means customers are getting something they may have wanted, thus putting both companies in a good light. Second, there will be, or it’s projected there will be, more revenue coming from this.
What do you think?
Featured Image: nakedbrands.com