Digital Brands Group Reports Third Quarter 2022 Financial Results with a 58% Increase in Revenues

About this update from Digital Brands Group, Inc.

[{"type":"text","content":"AUSTIN, Texas, Nov. 14, 2022 /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, 2022. \nThird Quarter 2022 Highlight Compared to Third Quarter 2021\nNet revenues of $3.4 million, an increase of 58.3% or $2.2 millionThis excludes deferred revenue of $0.4 million, which will be recognized in our fourth quarter resultsGross profit margin of 48.3% versus 55.9%Gross profit was negatively impacted by 5.1% due to the accounting treatment of deferred revenue and the timing of fabric costs in our men's custom business, which will benefit the fourth quarter gross profitNet loss per diluted share of $9.26 versus a net loss of $75.83Net loss attributable to common stockholders was $4.9 million versus a net loss of $8.9 millionThe net loss included interest expense of $2.3 million, which should be less than $150,000 a quarter going forward due to the elimination of debt\"We are pleased to announce that we delivered strong revenue growth and continued operating leverage on our fixed costs in the third quarter,\" said Hil Davis, Chief Executive Officer of Digital Brands Group. \"We also reduced our debt significantly during the quarter, which allows us to factor our wholesale purchase orders. This enables us to transition to a positive working capital cycle from the negative working capital cycle we have historically operated our businesses.\n\"Additionally, we launched the Bailey shop in October, which is a single e-commerce destination that features all our brands. We have experienced strong results and consumer trends since we launched this multi-brand site. We believe this shows the power of our initial vision and business model and sets a strong foundation to which we can add additional brands, like Sundry, as we bring them into our portfolio,\" said Davis.\nThird Quarter 2022 Highlights\nNet Sales were $3.4 million versus $2.2 million in the year ago quarter, an increase of 58.3% year over year. Net sales excluded $0.4 million in deferred revenue associated with the timing of when customer orders were placed versus when they were shipped in our men's custom business, as there is an approximate four-week lag between ordered versus shipped. Net sales were also negatively impacted due t...

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