Austin, Texas, July 8, 2021 / PRNewswire / – Digital Brands Group, Inc. (the “Company” or “DBG”) (NASDAQ: DBGI), a curated collection of luxury lifestyle and digital-first brands, announced that their first estimate of financial results for the quarter has ended June 30, 2021 points out that second quarter 2021 revenues are up about 100% from first quarter 2021 numbers, which include just six and a half weeks of revenue contribution from Harper & Jones.
“We believe this continues to illustrate the momentum we discussed on our first quarter results conference call and in the press release,” said Hil Davis, the company’s CEO. “As mentioned earlier, we expected improved operating results in the second quarter and we expect significantly improved operating results in the third and fourth quarters of 2021 as we now have sufficient cash and inventory to support the expected level of operations.”
Milestones have been set since the company’s IPO in May this year, which strengthened the company’s balance sheet with cash for working capital:
- The shipment of Bailey 44 products on wholesale accounts from mid-May, with a significant acceleration in wholesale booking orders for autumn 2021, corresponding to the wholesale level before the pandemic,
- The delivery of inventory for DSTLD that arrived at the company’s warehouse in late May, with the majority expected to arrive in mid-July through mid-September, and
- Developing a marketing and promotional plan, including an Amazon marketing strategy, with first roll out in mid-July and most of the spend starting this fall.
These sales estimates do not include any effects of our announced non-binding letter of intent to acquire Stateside, which will have a positive impact on sales and operating profit in 2021 upon completion of the acquisition.
The company will publish its full results for the second quarter of 2021 on or earlier August 16June 2021. The company will provide a schedule update for the associated conference call ahead of the conference call date.
Certain statements in this press release are “forward-looking statements” within the meaning of federal securities laws. Forward-looking statements are based on our expectations and beliefs about future events that will affect DBG and therefore involve various risks and uncertainties. You can identify these statements by using words such as “will”, “anticipate”, “estimate”, “expect”, “should” and “may” and other words and expressions with similar meanings or future use in the absence of these However, words or similar expressions do not mean that any statement is not forward-looking. All statements regarding the plans, goals, forecasts and expectations of DBG with regard to the business activities or the financial performance of DBG as well as the associated assumptions are forward-looking statements. We caution you that forward-looking statements are not guarantees and that actual results may differ materially from those expressed or implied in the forward-looking statements. DBG does not undertake any obligation to publicly update or revise forward-looking statements as a result of new information, future events or for other reasons, unless this is required by law. Potential risks and uncertainties that could cause actual results of operations or financial condition of DBG to differ materially from those expressed or implied in any forward-looking statement include, but are not limited to: Risks arising from the widespread outbreak of a disease or other any transferable Diseases or other public health crises, including the global coronavirus (COVID-19) pandemic; the level of consumer demand for clothing and accessories; Disruption of the DBG’s sales system; the financial strength of DBG’s customers; Fluctuations in the price, availability and quality of raw materials and contract products; Disruption and volatility in global capital and credit markets; DBG’s response to changing fashion trends, developing 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 execute its business strategy; DBG’s ability to expand its wholesale and direct customer business; Changes and challenges in retail; the ability of DBG and its providers to maintain the strength and security of information technology systems; the risk that the facilities and systems of DBG and those of our third-party providers are susceptible to data security breaches and data or financial losses and cannot foresee or detect these; DBG’s ability to properly collect, use, manage and secure consumer and employee data; Stability of the production facilities of DBG and foreign suppliers; continued use of ethical business practices by DBG suppliers; DBG’s ability to accurately predict demand for products; Continuity of the members of the DBG management; DBG’s ability to protect trademarks and other intellectual property rights; possible impairment of goodwill and other assets; DBG’s ability to conduct 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 necessary could prevent DBG from meeting its financial obligations; and climate change and an increased focus on sustainability issues. Additional information on potential factors that could affect DBG’s financial results are contained 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 Filed or filed with the SEC on Forms 8-K.
About the Digital Brands Group
We offer a wide range of clothing through numerous brands, both direct to consumers and wholesalers. We have developed a business model that was derived from our establishment as a Digital Native First Vertical Brand. Digital Native First Brands are brands that were founded as e-commerce-driven companies where online sales account for a significant proportion of net sales, although they later often expand into wholesale or direct retail channels as well, and vertical brands control our own sales Products directly from our third-party manufacturers and sell directly to the end user. We focus on owning the customer’s “closet portion” by using their data and purchase history to create personalized targeted content and search for that specific customer cohort. We have strategically evolved into an omnichannel brand that offers these styles and content not only online but also in select wholesale and retail stores. We believe this approach gives us opportunities to successfully increase Lifetime Value (“LTV”) while increasing new customer growth.
Digital Brands Group, Inc. Contact the company
Hil Davis, CEO
Email: [email protected]
Phone: (800) 593-1047
SOURCE Digital Brands Group, Inc.
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SOURCE Digital Brands Group, Inc.