Business
Digital Brands Group Reports Fourth Quarter and Fiscal Year 2022 Financial Results
Expects to generate internal free cash flow of $500,000 per month starting in October AUSTIN, Texas, April 17, 2023 /PRNewswire/ -- Digital Brands Group, Inc.
About this update from Digital Brands Group, Inc.
[{"type":"text","content":"Expects to generate internal free cash flow of $500,000 per month starting in October\nAUSTIN, Texas, April 17, 2023 /PRNewswire/ -- Digital Brands Group, Inc. (\"DBG\") (NASDAQ: DBGI), a curated collection of luxury lifestyle, digital-first brands, today reported financial results for its fourth quarter and 2022 fiscal year ended December 31, 2022. \nOur fourth quarter and fiscal year 2022 financial results do not include the impact and results from our acquisition of Sundry on December 30, 2022. Our acquisition of Sundry has had a significantly positive impact on our year-to-date results, as we noted on our State of the Union call in March, which includes the expectation to generate $500,000 in internal cash flow per month starting in October.\nResults for the Fiscal 2022\nNet revenues for fiscal 2022 increased 84.2% to $14.0 million compared to $7.6 million in 2021Gross margin profit increased 218.5% to $6.0 million compared to $1.9 million in a year ago Gross margin was 42.6% versus 24.6% a year agoG&A expenses of $16.4 million declined by $400,000 compared to $16.8 million a year agoSales and marketing expenses were $5.0 million compared to $3.8 million a year agoSales and marketing expenses ratio was 35.4% compared to 50.2% a year agoDistribution expenses were $612,000 compared to $489.000 million a year agoDistribution expenses ratio was 4.4% compared to 6.5% a year agoNet loss attributable to common stockholders was $38.0 million, or $49.32 per share, compared to $32.4 million, or $424.15 per share, a year agoNet loss included $16.1 million in impairment charges or $20.88 per share. Additionally, there was $9.0 million in interest expense, or $11.69 a shareExcluding these items, net loss would have been $12.9 million, or a loss of $16.76 per share, compared to a loss of $16.5 million, or a loss of $216.67 per share, a year agoResults for the Fourth Quarter\nNet revenues were $3.4 in the fourth quarter of 2022 compared to $4.0 million a year agoThe revenue decline was driven (1) a $420,000 decline in our advertising spend as we focused on the launch and cross merchandising of our multi-brand site the Bailey Shop and (2) lack of wholesale revenue from Bailey 44 as we moved that to online only starting in June of last year to focus on an overhaul of the product design and process. We have restarted Bailey 44 wholesale, whic...