Digital Brands Group, Inc. · NASDAQ:DBGI
Digital Brands — Denim LA — Crowdfunding (March 2020)
22 slides from Digital Brands's crowdfunding presentation, March 2020
Slide 1: DENIM.LA
Slide 2: Reshaping Traditional Retail
Reshaping Traditional Retail a =~) 8:35 oe (235 oo Kinbox Howdoyoulayer? BAILEY44 Thank you for your purchase! RECEIPT DSTLD » $90.00 BAILEY44 «$350.00 Future Shoe Brand =» $250.00 Tom. $ 690.00 Denim.la has revolutionized the corporate holding company for direct to consumer and wholesale apparel br
Slide 3: Current Retail Issues: Traditional Retail is Broken
CURRENT RETAIL ISSUES Traditional Retail is Broken & Digital-Only Brands Can Not Scale to Sustainability uy a) The SoftBank-backed company that sold everything for $3 is abruptly shutting down, refusing orders, and laying off employees THINS ust (# ) SOLD! Read the article here. Read the article her
Slide 4: Revolutionizing the Holding Company Model by 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 CG ex CUSTOMER DATA = OWNING THE MARGIN STACK COST SYNERGIES Se closet share CUSTOM
Slide 5: How We Win: Driving Significant Revenue Growth
HOW WE WIN 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 s
Slide 6: How We Win: Lower cost base creates exponential cash flow
HOW WE WIN Revolutionizing the Holding Company Model Lower cost base creates exponential cash flow Y al O43 ° 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
Slide 7: Driven by Wall Street Ready Management Team
DENIM.LA VISION Driven by Wall Street Ready Management Team Hil Davis CHIEF EXECUTIVE OFFICER Hil came to Denimia 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 a $55
Slide 8: Timeline
Timeline JAN 2020 MAR 2020 =| APR 2020 Began two-year All acquisitions File S-1 with SEC GAAP PCAOB audits signed and all audits | and apply with the for all acquisitions completed NASDAQ (already discussing the process with them) FEB 2020 Future events on this slide are projections and cannot be gu
Slide 9: Current State
Current State DENIM.LA NET REVENUE 2019 2020 (1) 2021 2022 Owned brands : $30,370,649 : $36,360,506 83! Harper@Jones EBITDA 2019 2020 (1) 2021 2022 BAILEY 44 eettwe CHAMP Owned brands ; -$5,225, ,510, $2,662,114 $3,969,332 ALI & JAY wings+horns The “Finalizing” companies listed above are working thr
Slide 10: Current Portfolio of Brands
Current Portfolio of Brands
Slide 11: The Purpose and The 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 12: The Purpose and The 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 13: The Purpose BAILEY44
The Purpose BAILEY44 * 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
Slide 14: The Purpose and The Opportunity
The Purpose * Amillennial contemporary collection of dresses, rompers and jumpsuits that are easy, effortless, feminine, and casual, while balancing modern and sophisticated California style. * Available online and with wholesale partners such as Nordstrom, Bloomingdales, Neiman Marcus, and Saks. *
Slide 15: Financials: Current Brands
FINANCIALS Current Brands WE OWN 2019 2020 (1) Net Revenue $30,370,649 : $36,360,506 : $43,632,608 : $52,359,129 coas $13,201,825 : $15,678,210 : $18,595,792 : $22,053,155 Gross Profit $17,168,824 : $20,682,210 : $25,036,816 : $30,305,974 Gross Margin % 56.5% 56.9% 57 A% 57.9% Marketing Expenses $2,
Slide 16: Brands to be Acquired
Brands to be Acquired wings + horns
Slide 17: Future Intent
Future Intent * High-quality designed leather goods and accessories. + Dedicated and lean supply chain allowing them to chase inventory that sells out or produce quick collections based on trends or the data captured by Denim.la. * Easy product category to cross-promote across all the brands or prod
Slide 18: 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
Slide 19: Future Intent
Future Intent * Qwned by CYC, which also owns Wings + Horns. + This brand helps us attract influential fashion credibility and other acquisitions. + Successfully built strong industry connections and launched collaborations, with brands such as Adidas, Nike, and Asics. + Provides us with a “hot” dua
Slide 20: Future Intent
Future Intent * Owned by CYC, which also owns Reigning Champ. + Tailored streetwear and trend-focused high-quality product offerings with a premium price point * Build on the portfolio’s strong male consumer base by offering more on-trend pieces, crafted in quality and true to fit. + Brand has had l
Slide 21: Pro-Forma Financials: All Brands
PRO-FORMA FINANCIALS All Brands ALL BRAN 2019 2020 (1) 2021 2022 Owned Brands : $30,370,649 i $36,360,506 i $43,632,608 : $52,359,129 Brands to be Acquired $32,191,876 == $8,750,808 == $46,501,005 —==——«$55,801,208 Total Net Revenue $62,562,526 $75,111,344 == $90,133,613 $108, 160,336 ‘Owned Brands
Slide 22: Forward-looking statements and offering notice
* This Slide Deck PowerPoint Presentation (“Presentation”) contains only preliminary information regarding our Company and should be read in conjunction with the entire Private Placement Offering Memorandum (“Memorandum” and/or Subscription Agreement. The Company and our officers and representatives