Business
Digital Brands Group Reports Second Quarter 2023 Financial Results
Net Earnings of $5.0 million or $0.38 per diluted share Revenues increased 69.6% to $4.5 million, which excludes the revenue from the Harper & Jones spin out
About this update from Digital Brands Group, Inc.
[{"type":"text","content":"Net Earnings of $5.0 million or $0.38 per diluted share\nRevenues increased 69.6% to $4.5 million, which excludes the revenue from the Harper & Jones spin out\nAUSTIN, Texas, Aug. 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 second quarter ended June 30, 2023. \n\"We are pleased to see the significant revenue growth and operating leverage since the acquisition of Sundry. In fact, based on wholesale bookings and current e-commerce trends, our third quarter and fourth quarter revenues will be meaningfully higher than this quarter. Additionally, we will continue to show a higher level of cost savings in our third and fourth quarters versus this quarter, \" said Hil Davis, CEO of Digital Brands Group.\n\"We are also excited about our two new revenue channels that will launch this Fall, which are our proprietary affiliate program and our multi-brand retail store. We have had to place a limit on the number of reps in the affiliate program and are now building a waiting list.\"\nResults for the Second Quarter\nNet revenues increased 69.6% to $4.5 million compared to $2.6 million a year agoThis excludes revenue from Harper & Jones as it was spun out in the second quarterGross margin increased 40.4% to $2.2 million compared to $1.5 million a year agoGross profit margins increased to 52.0% from 42.0% a year agoG&A expenses, including non-cash items, decreased 4.0% to $4.1 million compared to $4.2 million a year agoG&A as a % of revenue declined to 90.7% from 160.1% a year agoG&A expenses included $1.3M in non-cash expenses associated with D&A, amortization of loan discount, and stock option expenseSales & Marketing expenses decreased 20.1% to $1.1 million compared to $1.4 million a year agoSales and marketing expenses ratio was 50.9% compared to 89.3% a year agoIncome from operations was $9.0 million compared to a loss of $10.6 million a year agoNet income attributable to common stockholders was $5.0 million, or $0.38 per diluted share, compared to a loss of $9.5 million, or a loss of $26.47 per diluted share, a year ago\"We are still on track to generate internal free cash flow in October and based on current trends we expect this internal free cash flow to increase every quarter.\" said Hil Davis, Chi...