Digital Brands Group Reports Third Quarter 2021 Financial Results

About this update from Digital Brands Group, Inc.

[{"type":"text","content":"AUSTIN, Texas, Nov. 11, 2021 /PRNewswire/ -- Digital Brands Group, Inc. (\"DBG\") (NASDAQ: DBGI), a curated collection of luxury lifestyle, digital-first brands, today reported financial results for its third quarter ended September 30, 2021. \nThird quarter 2021 net revenue increased 75% year over year to $2.2 million versus $1.2 million a year ago. Our gross profit margin increased 96% year over year to 55.9% from negative 40.1% a year ago, an increase of $1.7 million in gross profit dollars. \nOur net loss per diluted share was $0.76 versus a net loss of $5.89 per diluted share a year ago, an improvement of 677% year over year. Our net loss attributable to common stockholders was $8.9 million versus a net loss of $3.9 million a year ago. The net loss included a non-cash expense associated with a change in the fair value of contingent liabilities of $4.0. million and a non-cash expense associated with a change in the fair value of our convertible notes of $0.6 million.\n\"Our third quarter 2021 results reflect another quarter of meaningful improvement in our business results from our first and second quarter results as we were able to benefit from the cash inflows from our IPO in the middle of May,\" said Hil Davis, Chief Executive Officer of Digital Brands Group. \n\"These improving business trends have continued into the fourth quarter. We now expect our fourth quarter revenues to double once again on a sequential quarterly basis to $4.0M, as the table below illustrates.\"\n\nStateside Acquisition Completed \nWe also finalized our acquisition of Stateside at the end of August, which resulted in only one month of revenue and cash flow contribution to our third quarter results. We expect Stateside to add meaningful revenue and cash flow to our fourth quarter of 2021, and in fiscal year 2022.\nFiscal Year 2022 Revenue and EBITDA Guidance\nWe are providing fiscal year 2022 net revenue guidance of $37.5M to $42.5M, an increase of 350% from 2021 revenue expectations. Additionally, the Company forecasts positive EBITDA for 2022, as it leverages its shared services platform. \n\n\"Our 2022 revenue guidance reflects the power of our brand portfolio, especially as we are able to benefit from the full year revenue contribution from our acquisitions in 2021,\" said Hil Davis, Chief Executive Officer of Digital Brands Group. \n\"This for...

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