Business
Digital Brands Group Reports Second Quarter 2024 Financial Results
Austin, TX, Aug. 19, 2024 (GLOBE NEWSWIRE) -- Digital Brands Group, Inc. (“DBG”) (NASDAQ: DBGI), a curated collection of luxury lifestyle, digital-first
About this update from Digital Brands Group, Inc.
[{"type":"text","content":"Austin, TX, Aug. 19, 2024 (GLOBE NEWSWIRE) -- 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, 2024. “The company paid off over $5.0 million in debt and other liabilities during the first half of this year. The Company also lowered its G&A expenses by $4.5 million during the same period. Based on conversations with strategic partners, we believe cleaning up the balance sheet creates more interest, especially coupled with significantly lower operating expenses,” said Hil Davis, CEO of Digital Brands Group. Davis continued, “We believe the softer consumer environment will improve. At that time, we believe the Company will be in a much better position to leverage any growth spend, especially given the lower operating expenses and significantly lower interest expense. To that point, we have recently turned back on digital advertising and are experiencing a 2.6x to 2.9x ROAS.” Results for the First Quarter Net revenues were $3.4 million compared to $4.5 million a year ago Net revenues were negatively impacted by no digital advertising spend, which resulted in limited e-commerce revenueThe Company prioritized paying off over $5.0 million in debt and other liabilities during the first half of 2024 Gross profit margins were 45.9% compared to 52.0% a year ago Gross profit margins were negatively impacted by lower digital revenue associated with no digital advertising revenue in the quarterGross profit was $1.6 million compared to $2.3 million a year ago G&A expenses decreased $1.1 million to $2.9 million compared to $4.1 million a year ago G&A included $1.8 million in non-cash expenses primarily associated with D&A Sales & Marketing expenses were $615,000 compared to $1.1 million a year ago Sales and marketing expenses ratio was 18.1% compared to 24.4% a year agoAs noted above, the Company dd not spend any capital on digital advertising Net loss was $3.5 million compared to a net loss of $5.7 million a year ago, which excludes a one-time non-cash benefit of $10.7 million a year ago Including this benefit, net income was $5.0 million a year ago Net loss per diluted share was $2.08 per diluted share compared to a net income per diluted share of $0.31 a year ago, which included the $10.7 million benefit a ...