Digital Brands Group, Inc. · NASDAQ:DBGI
Digital Brands — Denim LA — Crowdfunding (December 2020)
19 slides from Digital Brands's crowdfunding presentation, December 2020
Slide 1: Digital Brands Group
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Slide 2: Reshaping Traditional Retail
8:35 “eo How do you layer? BAILEY 44 e Thank you for your purchase! RECEIPT DSTLD «$90.00 BAILEY44 «a $360.00 Future Shoe Brand 1 $ 250.00 Reshaping Traditional rma $ 690.00 Retail Digital Brands Group has revolutionized the corporate holding company for direct to consumer and wholesale apparel bran
Slide 3: Traditional Retail is Broken; Digital-Only Brands Can Not Scale
= wae a) The SoftBank-backed company that sold everything for $3 is abruptly shutting down, refusing orders, and laying off employees CURRENT RETAIL ISSUES al Traditional Retail is Broken Read the article here. & Read the article here. Digital- Only Traditional department and specialty stores are no
Slide 4: Owning Multiple Brands
Revolutionizing the Holding Company Model by Owning Multiple Brands Driving significant revenue growth over a lower shared cost base, creating margin expansion, resulting in exponential cash flow. PORTFOLIO OF BRANDS ic) CUSTOMER DATA ae i OWNING THE MARGIN STACK COST SYNERGIES CLOSET SHARE eal/ MAR
Slide 5: How We Win
HOWWEWIN Revolutionizing the Holding Company Model DRIVING SIGNIFICANT REVENUE GROWTH PORTFOLIO CLOSET OF BRANDS SHARE Very seldom does one wear the same brand from head to toe. By owning multiple brands across complementary categories, the customer is provided head to toe looks and personalized sty
Slide 6: Case study: Cross-Merchandising Our Portfolio Brands Drives Results
HOWWEWIN Revolutionizing the Holding Company Model Case study: Cross-Merchandising Our Portfolio Brands Drives Results DSTLD separates merchandised with Bailey 44 product on bailey44.com increased sales of the Bailey’s collection Jane Jacket 400% increase in units sold 71% increase in units sold Mer
Slide 7: Case study: Cross Merchandising Increases Results and Decreases CAC
HOWWEWIN Revolutionizing the Holding Company Model Case study: Cross Merchandising Increases Portfolio Results & Significantly Decreases CAC Costs DSTLD products featured for sale on bailey44.com increased DSTLD sales and there was no CAC to acquire the customer DSTLD Denim Skirt DSTLD Leather Hoodi
Slide 8: Marketing Best Practices Applied to Bailey's Acquisition
HOWWEWIN Revolutionizing the Holding Company Model Our Marketing Team Applied Our Best Practices to Bailey's Acquisition New Photography, Styling and Customer Communications Created an Immediate Lift in Product Sales Ae Weldon Belted Jacket Mini Marguerite To; 9 P From 0 units to 22 units in 3 weeks
Slide 9: Lower Cost Base Creates Exponential Cash Flow
HOWWEWIN Revolutionizing the Holding Company Model LOWER COST BASE CREATES EXPONENTIAL CASH FLOW al OWNING THE CASH FLOW MARGIN STACK CONTROL By owning the supply chain and margin stack, the group controls the retail price points, the promotional activities, and the gross/ operating margins. This re
Slide 10: Cost Synergies = Margin Expansion
HOWWEWIN Revolutionizing the Holding Company Model COST SYNERGIES = MARGIN EXPANSION PURCHASING POWER = 0.5% to 1.0% of margin expansion SHIPPING & FULFILLMENT = 0.5% to 1.0% of margin expansion PACKAGING = 0.1% to 0.2% of margin expansion TECH & MARKETING CONTRACTS = 0.2% to 0.5% of margin expansio
Slide 11: Driven by Wall Street Ready Management Team
DBG VISION Driven by Wall Street Ready Management Team Hil Davis CHIEF EXECUTIVE OFFICER Hil came to Digital Brands Group in March 2018 with a substantial background in e-commerce and luxury apparel. In 2007, he founded J. Hilburn, a made-t-measure men’s apparel brand that he built from an idea into
Slide 12: IPO and Post-IPO Acquisition Timeline
ACQUISITIONS Timing IPO TIMELINE f t t t NOVEMBER 2020 DECEMBER 2020 FEBRUARY 2021 MARCH 2021 File Confidential S-1 File Public S-1 Approved by SEC List on the NYSE and NYSE POST IPO TIMELINE MARCH 2021 APRIL 2021 JUNE 2021 JULY 2021 Acquire Brand 1 Acquire Brand 2 Acquire Brand 3 Acquire Brand 4
Slide 13: Pro Forma Income Statement
PRO FORMA INCOME STATEMENT NET REVENUE Acquired Brands All Brands Bailey 44 $27.1M $7.0M $13.5M $18.2M $23.7M $29.6M DSTLD $3,0M $2.5M $6.5M $9.1M $12.3M $16.0M Harper & Jones $3.3M $3.0M $6.0M $8.7M a $15.3M Jack George (End of Feb 2021) N/A N/A $8.3M $11.5M $12.9M $14.2M Total Acquired Brands $33.
Slide 14: Pro Forma Income Statement All Brands
PRO FORMA INCOME STATEMENT All Brands L BRANDS 2019 2020 tn 2022 2023 2024 Total Net Revenue (allbrands) $33.5M = $125M = = $78.5M $210.8M $311.3M = $377.6M Gross Margin : $18.0M : $6.7M : $44.7M $120.7M $179.4M : $221.0M As a % of revs 53.7% 53.7% 57.0% 57.2% 57.6% 58.5% Marketing $2.1M : $1.4M $12
Slide 15: Current Portfolio of Brands
Current Portfolio of Brands
Slide 16: Bailey 44: The Purpose and Opportunity
The Purpose * Focused on classic design, superior quality, and essential product selection in order to deliver the perfect core wardrobe. * Inspired by a sophisticated, modern and sleek style utilizing an edited color palette. * Creative and urban, city dwellers within the coveted age demographic of
Slide 17: Harper & Jones: The Purpose and Opportunity
The Purpose * Offers premium suiting and sportswear at an exceptional value. Constructed from luxury fabrics and designed in multiple fits, to create a more custom-tailored look as all men are built differently. * Partnering with the best mills and factories in Italy and Europe, the collection is dr
Slide 18: DSTLD: The Purpose and Opportunity
The Purpose + Acontemporary womenswear brand that combines beautiful, luxe fabrics with on-trend designs specializing in the “date night” category. * Majority of distribution through specialty and select wholesale partners such as Nordstrom and Bloomingdales. * The most well-known brand and widest d
Slide 19: Future Intent
Future Intent * Tastemaker stylish “made-to-measure” suiting and sportswear that relays a one-of-a-kind confidence. * Ability to provide full-closet customization, including shirts, jackets, pants, shorts, polos, and more that are all made-to-measure. * Positive working capital cycles with 75% gross