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Tag: NASDAQ:DBGI

  • An After-Hours Upswing In Digital Brands (DBGI) Stock

    An After-Hours Upswing In Digital Brands (DBGI) Stock

    The shares of Digital Brands Group, Inc. (NASDAQ: DBGI) demonstrated a noteworthy surge during the extended trading session on Tuesday, marking a robust 6.37% increase to reach $2.67. This upswing followed a regular-session 3.50% rise, concluding Digital Brands’ stock at $2.51. The impetus for this surge in DBGI stock can be attributed to the company’s recent disclosure of expansion initiatives.

    Digital Brands (DBGI) has outlined its intention to inaugurate 50 retail establishments over the next few years, financing this venture through its internal free cash flow. The company has diligently assessed potential store locations and lease agreements in collaboration with prominent retail developers.

    DBGI is sanguine about the substantial enhancement of brand visibility, cost-effective customer acquisition, augmented average basket size, and heightened customer retention that retail stores can bring. Based on the anticipated metrics from these establishments, Digital Brands envisions an annual revenue exceeding $1.5 million per store with positive cash flow at the store level.

    Extrapolating from the 50-store strategy, DBGI anticipates an aggregate annual revenue surpassing $75 million and consequential store-level cash flow. Furthermore, these planned retail stores are anticipated to bolster revenue across Digital Brands’ wholesale and e-commerce channels, drawing insights from the performance of similar brands with retail presence.

    In a recent development, Digital Brands has formalized its commitment to opening its inaugural retail store in March, projecting annual revenue surpassing $1.5 million and annual cash flow exceeding $500,000. These estimates are derived from historical metrics and the performance of this particular store, considering excess Sundry inventory preceding the acquisition.

    DBGI strategically plans to utilize this retail outlet to liquidate surplus inventory, realizing significantly higher profit margins compared to off-price channel sales. Notably, DBG has inherited a substantial amount of excess inventory through its Sundry acquisition, with no additional costs associated, as these units have already been paid for and are housed in its warehouse.

    Consequently, the company foresees substantial annual cash flow exceeding $500,000 from this store. The decision to initiate with an outlet location is rooted in the availability of finished goods inventory already paid for and stored in the warehouse, coupled with the favorable historical metrics and performance of this store.

  • Digital Brands Group Inc. (DBGI) stock surged in the premarket trading session; find out why

    Digital Brands Group Inc. (DBGI) stock surged in the premarket trading session; find out why

    In the current trading session, the shares of Digital Brands Group Inc. (DBGI) stock had surged by 12.90% to trade at the price of $5.95 at last check. The DBGI stock closed the session previously at $5.27. The past 90 days’ average trade volume has been 5.91 million. The DBGI stock volume traded 11.45 million shares. In the past week, DBGI stock has moved down by -8.82%. Furthermore, Digital Brands Group Inc. is currently valued in the market at $55.30million and has 10.49 million outstanding shares.

    What are the latest operational maneuvers and financial updates in Digital Brands Group?

    On 28th June 2021, Digital Brands Group Inc. released its first-quarter financial results for the financial year 2021 which ended on 31st March 2021.

    The overall financial results and balance sheet display the hiccups and continued operation distortion due to the COVID-19’s pandemic. One of the main aims of the company was to make to conserve their market spending and make it more efficiently aligned with the reduced business operations and corporate activities. This was primarily due to COVID-19’s impact on the Bailey 44 which also limited the company’s cash-on-hand and inventory stock.

    However, the company expects to see improved results in the second quarter however this improved result is relative to the first quarter and not the same financial performance as pre-pandemic times. The CEO of the DBGI stock Hil Davis stated that the operational improvement in the result will be displayed in the third and fourth quarter of 2021. The amount of cash that DBGI stock has as of now as well as the level of inventory is enough to sustain the expected amount of operational activities for the second, third and fourth quarter of 2021.

    The IPO of the company in last May boosted the cash balance and now the main contributors to the increased level of performance for the rest of the year are due to three factors; The company’s DSTLD inventory shipment had arrived in late May with the bulk of the inventory expected to arrive mid of this month till mid of September. DBGI stock has shifted its ship Bailey 44 product to wholesale accounts which started in Mid-May. This boosted the wholesale demand and orders which the company states is equal to the same level as prior to the pandemic.

    Lastly, the company is creating a marketing and advertising plan majorly for its latest marketing strategy. This marketing strategy is putting the company’s latest business expansion towards Amazon into the spotlight, as it decides to sell select brands through the largest third-party e-commerce platform. We previously wrote an article regarding this latest expansion and why Amazon is the right move for DBGI stock’s expansion.

    Closing of the proposed underwriter’s over-allotment option

    The company also announced (28th June 2021) that it has closed the remaining over-allotment option for the underwriters who had purchased an additional 361,445 shares at $4.15 per share. A total of 2,771,084 shares of DBGI’s common stock have been sold for a gross aggregate of $11.5 million. This proposed offering was closed on 18th May.

  • Digital Brands Group Inc. (DBGI) stock surged in the current trading session; here’s why

    In the current trading session, Digital Brands Group Inc. (DBGI) shares had surged by 49.88% to trade at the price of $6.13 at the last check. DBGI stock previously closed the session at $4.09. The DBGI stock volume traded 30.99 million shares. In the past week, DBGI stock have moved up by 21.01%. Furthermore, Digital Brands Group Inc. is currently valued in the market at $42.92 million and has 10.49 million outstanding shares.

    About Digital Brands Group Inc.

    Digital Brands Group Inc. is an Apparel-retail company that specifically focuses on the provision of apparel that belong to various brands. The companies sale channel consist of DTC (Direct-to-consumer) and wholesale basis. DBGI is a digitally native vertical brand and has a network of third-party manufacturers that assist in the procurement and sourcing of clothes which are then directly sold through their e-commerce website to the end consumers. The company also sells to specialty stores, specific department stores and franchises in a wholesale bundle. The diverse product offering on the company includes denims, luxury suits, and women’s tops, dresses, bottoms, jackets, and rompers. All of these product offerings are listed and sold under branded names like DSTLD, ACE Studios, and Bailey brand. The company was previously named Denim.LA Inc. and was founded in 2012. DBGI stock’s headquarter is established in Austin, Texas.

    DBGI expanding its business through third party ecommerce platforms and acqusitions

    The pandemic has shifted the businesses and retail product consumption towards online shopping on ecommerce platforms and with the recovery of the economy along with the rolling of vaccinations consumers are making bold consumption decisions and demands. This is the ideal time for retail companies to expand and grow their e-commerce business.

    Digital Brands Group has taken a page from this strategy and taken to Amazon to expand their online business. DBGI stock announced today that it will allow select brands to be sold onto the platform of Amazon from this fall. The platform of Amazon is an ideal opportunity for expansion since according to a Wells Fargo report Amazon has taken the throne from Walmart as the top apparel seller in March. The sales of apparel and footwear incremented by 15% in 2020 and is 20%-25% above rival Walmart valued at $41 billion.

    DBGI stock had previously announced that it had entered into a non-binding agreement with an elevated basics brand known as stateside. The company had announced on 15th June 2021, that intends to enter a binding agreement within 30 days for acquisition which will be done through a transaction of cash and equity to Stateside. The main strategy for this acquisition is to fortify their vision of expansion since their IPO for growing brand portfolios.

    Stateside is a Los Angeles-based company that has already a well-established network of local manufacturing through the community of Los Angeles. DBGI stock’s aim was to expand into an omnichannel and create its own channel of distribution as well as manufacturing.