AUSTIN, Texas, Sept. 28, 2021 /PRNewswire/ -- Digital Brands
Group, Inc. ("DBG") (NASDAQ: DBGI), a curated collection
of luxury lifestyle, digital-first brands, today announces its
initial 2022 revenue guidance of $37.5
million to $42.5 million, an
increase of 350% from 2021 revenue expectations.
Additionally, the Company forecasts positive EBITDA for 2022, as it
leverages its shared services platform
"Our 2022 revenue guidance reflects the power of our brand
portfolio, especially as we are able to benefit from the full year
revenue contribution from our acquisitions in 2022," said
Hil Davis, Chief Executive Officer
of Digital Brands Group.
"This forecasted increase of 350% in our year over revenue
growth does not reflect any potential additional acquisitions, nor
does it reflect any meaningful benefit from our expected increase
in marketing spend."
"Additionally, we expect to achieve cash flow EBITDA in 2022 due
to the leverage we are experiencing from our shared services
platform. We are excited about the cost savings we are experiencing
from this shared services platform, especially as it relates to
revenue generating marketing initiatives."
Our forecasted increase in 2022 revenues is driven by the
following factors:
- For DSTLD:
-
- The addition of wholesale revenue with limited key accounts for
brand awareness;
- A meaningful increase in digital marketing advertising, which
was minimal in 2021;
- A full year of selling on Amazon;
- A full inventory stock for the entire year;
- And new product expansion driven by our recently hired women's
designer
- For Bailey 44:
-
- A full year of wholesale revenue versus six months in
2021;
- A meaningful increase in digital marketing advertising, which
was minimal in 2021;
- And a full inventory stock for the entire year.
- For Harper & Jones:
-
- A full year of revenue contribution versus approximately seven
months in 2021;
- New showroom openings;
- The full year benefit of new clothiers who started in the
second half of 2021;
- And a meaningfully larger ready to wear offering versus
2021.
- For Stateside:
-
- A full year of revenue contribution versus four months in
2021;
- New product categories in women's knits and woven tops;
- A meaningful increase in digital marketing advertising, which
was minimal in 2021.
Finally, as we discussed in our S-1, we expect to continue to
grow through acquisitions and expect to continue to acquire
companies this year, most of which will require GAAP PCAOB audits.
These audits take time, which results in a delayed acquisition
timeframe weighted toward the back three to four months of
2021.
Forward-looking Statements
Certain statements
included in this release are "forward-looking statements" within
the meaning of the federal securities laws. Forward-looking
statements are made based on our expectations and beliefs
concerning future events impacting DBG and therefore involve
several risks and uncertainties. You can identify these statements
by the fact that they use words such as "will," "anticipate,"
"estimate," "expect," "should," and "may" and other words and terms
of similar meaning or use of future dates, however, the absence of
these words or similar expressions does not mean that a statement
is not forward-looking. All statements regarding DBG's plans,
objectives, projections and expectations relating to DBG's
operations or financial performance, and assumptions related
thereto are forward-looking statements. We caution that
forward-looking statements are not guarantees and that actual
results could differ materially from those expressed or implied in
the forward-looking statements. DBG undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, except
as required by law. Potential risks and uncertainties that could
cause the actual results of operations or financial condition of
DBG to differ materially from those expressed or implied by
forward-looking statements include, but are not limited to: risks
arising from the widespread outbreak of an illness or any other
communicable disease, or any other public health crisis, including
the coronavirus (COVID-19) global pandemic; the level of consumer
demand for apparel and accessories; disruption to DBGs distribution
system; the financial strength of DBG's customers; fluctuations in
the price, availability and quality of raw materials and contracted
products; disruption and volatility in the global capital and
credit markets; DBG's response to changing fashion trends, evolving
consumer preferences and changing patterns of consumer behavior;
intense competition from online retailers; manufacturing and
product innovation; increasing pressure on margins; DBG's ability
to implement its business strategy; DBG's ability to grow its
wholesale and direct-to-consumer businesses; retail industry
changes and challenges; DBG's and its vendors' ability to maintain
the strength and security of information technology systems; the
risk that DBG's facilities and systems and those of our third-party
service providers may be vulnerable to and unable to anticipate or
detect data security breaches and data or financial loss; DBG's
ability to properly collect, use, manage and secure consumer and
employee data; stability of DBG's manufacturing facilities and
foreign suppliers; continued use by DBG's suppliers of ethical
business practices; DBG's ability to accurately forecast demand for
products; continuity of members of DBG's management; DBG's ability
to protect trademarks and other intellectual property rights;
possible goodwill and other asset impairment; DBG's ability to
execute and integrate acquisitions; changes in tax laws and
liabilities; legal, regulatory, political and economic risks;
adverse or unexpected weather conditions; DBG's indebtedness and
its ability to obtain financing on favorable terms, if needed,
could prevent DBG from fulfilling its financial obligations; and
climate change and increased focus on sustainability issues. More
information on potential factors that could affect DBG's financial
results is included from time to time in DBG's public reports filed
with the SEC, including DBG's Annual Report on Form 10-K, and
Quarterly Reports on Form 10-Q, and Forms 8-K filed or furnished
with the SEC.
About Digital Brands
Group
We offer a wide variety of apparel through
numerous brands on a both direct-to-consumer and wholesale basis.
We have created a business model derived from our founding as a
digitally native-first vertical brand. Digital native first brands
are brands founded as e-commerce driven businesses, where online
sales constitute a meaningful percentage of net sales, although
they often subsequently also expand into wholesale or direct retail
channels., Unlike typical e-commerce brands, as a digitally native
vertical brand we control our own distribution, sourcing products
directly from our third-party manufacturers and selling directly to
the end consumer. We focus on owning the customer's "closet share"
by leveraging their data and purchase history to create
personalized targeted content and looks for that specific customer
cohort. We have strategically expanded into an omnichannel brand
offering these styles and content not only on-line but at selected
wholesale and retail storefronts. We believe this approach allows
us opportunities to successfully drive Lifetime Value ("LTV") while
increasing new customer growth.
Digital Brands Group, Inc. Company Contact
Hil Davis, CEO
Email: invest@digitalbrandsgroup.co
Phone: (800) 593-1047
Related Links
https://www.digitalbrandsgroup.co
https://ir.digitalbrandsgroup.co
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SOURCE Digital Brands Group, Inc.