DBGI
Announces an Increase of 46.5% for Preliminary Revenue Results for
First Quarter Fiscal 2023
Austin, TX, May 4, 2023 -- InvestorsHub NewsWire -- Digital
Brands Group, Inc. ("DBGI")
(NASDAQ:
DBGI), a curated collection of luxury lifestyle,
digital-first brands, today announced that it expects first quarter
fiscal 2023 revenues to be approximately $5.0 million, an increase
of 46.5%.
Hil
Davis, Chief Executive Officer of Digital Brands Group, stated that
"Our 2023 first quarter reflected the strategic decision to lower
advertising spend as we onboarded a performance marketing agency,
which resulted in two months of significantly lower e-commerce
revenues.
However,
since the performance marketing began, we have seen our monthly
e-commerce revenue double from January levels. The increase in our
e-commerce revenues associated with the new performance marketing
agency will be even more fully reflected in our second quarter
revenues, but we are pleased that we are already seeing a
meaningful change in our e-commerce results since the agency
began."
Davis
continued, "Our first quarter results will also include the results
of our Sundry acquisition.
As we
stated on our State of the Union and fourth quarter earnings call,
we will see significant leverage on our fixed operating costs, as
well as a clear path to free cash flow and profitability in the
third quarter."
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
SOURCE Digital Brands Group,
Inc.
Related Links
https://www.digitalbrandsgroup.co
https://ir.digitalbrandsgroup.co