DIGITAL BRANDS GROUP, INC.
'The fourth quarter was the end of Sundry's bottom, which our first quarter results will reflect. Despite lower revenue contribution from Sundry in the fourth quarter, we almost achieved break even net income due to our cost savings (excluding non-cash expenses). Based on first quarter wholesale shipments and second quarter wholesale bookings, we are excited to see revenue growth meaningfully re-accelerate. This increase in the revenue trend will be coupled with a significantly lower operating expense structure,' said
'We are excited to announce our first quarter earnings in May, which we believe will show the strength of the business. We will also have preliminary results from our outlet store opening in
Results for the Fiscal Year
Net revenues increased 6.8% to
This excludes revenue from Harper & Jones as it was spun out in the second quarter
This represents the lowest point of Sundry's wholesale revenues in the second half of 2023 versus the first and second quarter wholesale bookings for 2024
Gross margin increased 10.2% to
Gross profit margins increased to 43.9% from 42.5% a year ago
G&A expenses, including non-cash items, decreased 12.7% to
G&A expenses, excluding non-cash item expenses, decreased 35.7% to
G&A expenses included
Sales & Marketing expenses decreased 18.5% to
Sales and marketing expenses ratio was 27.1% compared to 35.4% a year ago
Net loss per share attributable to common stockholders was
Net loss, excluding the non-cash charges and add backs was
Net loss per diluted share, excluding non-cash expenses and add backs, was
Results for the Fourth Quarter
Net revenues were
This includes non-cash contra revenue adjustment of
This also represents one of the lowest points of Sundry's wholesale revenue based on both the first and second quarter wholesale bookings
Gross profit decreased
This includes non-cash expenses of
Gross profit margins decreased to 18.3% from 19.0% a year ago, which includes the non-cash expenses to net revenues and cost of goods sold. Excluding these charges, gross profit margins would have been 43.5%
G&A expenses, including non-cash items, decreased 30.6% to
Sales & Marketing expenses decreased 13.4% to
Net loss per diluted share attributable to common stockholders was
Net loss was
Net loss per diluted share, excluding non-cash expenses was
Conference Call and Webcast Details Updated
Management will host a conference call on
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
https://ir.digitalbrandsgroup.co/news-events/press-releases/detail/112/digital-brands-group-reports-fourth-quarter-and-fiscal-year
About
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. 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.
Email: invest@digitalbrandsgroup.co
Phone: (800) 593-1047
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