Digital Brands Group, Inc. · NASDAQ:DBGI
Digital Brands — IPO Roadshow (May 2022)
23 slides from Digital Brands's IPO roadshow presentation, May 2, 2022
Slide 1: Issuer Free Writing Prospectus
Issuer Free Writing Prospectus Filed Pursuant to Rule 433 Registration Number: 333 - 264347 May 2022
Slide 2: Free Writing Prospectus and Forward-looking Statements
Free Writing Prospectus Issuer Free Writing Prospectus Issued Pursuant to Rule 433 of the Securities Act of 1933 , as amended (the "Securities Act") : Digital Brands Group, Inc . (the "Company") has filed a registration statement on Form S - 1 (File No . 333 - 264347 ), including a prospectus, as am
Slide 3: Transaction Summary
3 Transaction Summary Issuer Digital Brands Group, Inc . Exchange Nasdaq Ticker DBGI Offering Type Follow - On Offering Security Common Stock Base Transaction Size $ 12 , 500 , 000 Over - Allotment Option 15 % ( 100 % Primary) Closing Price (as of 4 / 28 / 2022 ) $ 0 . 71 Settlement T+ 2 Sole Underw
Slide 4: Reshaping Traditional Retail
Digital Brands Group has changed the traditional nature of the corporate holding company for direct to consumer and wholesale apparel brands by focusing on a customer’s "closet share" and leveraging their data and personalized customer cohorts to create targeted content. We believe this allows the c
Slide 5: Changing retail landscape and limits of digital-only brands
5 We believe that traditional department and specialty stores are no longer able to leverage their dominate power to determine brand product assortments, price points and promotional activity as they no longer maintain exclusivity on the customer relationship. We believe that the customer transactio
Slide 6: Modernizing the Holding Company Model by Owning Multiple Brands
Moder nizing the Holding Company Model by Owning Multiple Brands Our growth model focuses on driving significant revenue growth over a lower shared cost base, creating margin expansion, resulting in exponential cash flow. 6 PORTFOLIO OF BRANDS CLOSET SHARE CUSTOMER DATA CUSTOMIZED CONTENT OWNING THE
Slide 7: Closet Share and Customized Content
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 styles. This results in the customer buying and wearing multiple brands, across product categories instead of wearing a si
Slide 8: Capitalizing on the Changing Retail Landscape
Capitalizing on the Changing Retail Landscape Our growth model focuses on our f ormula for Sustainable Success: Acquire in Physical, Retain in Digital Traditional B&M For single - brand physical stores, we believe this is not a scalable solution. Many of t hese stores are unprofitable and require ba
Slide 9: Case study: Cross-Merchandising Our Portfolio Brands Drives Results
9 Moder nizing the Holding Company Model Jane Jacket 400% increase in units sold Merchandised with a DSTLD denim skirt Claudine Pant 71% increase in units sold Merchandised with DSTLD leather hoodie Case study: Cross - Merchandising Our Portfolio Brands Drives Results DSTLD separates merchandised wi
Slide 10: Cross Merchandising Increases Portfolio Results and Decreases CAC
10 Moder nizing the Holding Company Model DSTLD Denim Skirt 500% increase in units sold DSTLD Leather Hoodie 600% increase in units sold Case study: Cross Merchandising Increases Portfolio Results & Significantly Decreases CAC Costs DSTLD products featured for sale on bailey44.com increased DSTLD sa
Slide 11: Applying Best Practices to Bailey's Acquisition
Moder nizing 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 Addie Polka Dot Sweater 225% Increase in Units Sold Weldon Belted Jacket From 0 units to 22 uni
Slide 12: Owning the Supply Chain and Margin Stack
By owning the supply chain and margin stack, the group controls the retail price points, the promotional activities, and the gross/operating margins. This results in (1) lower price points for the customer, which increases sell - through and revenues, and (2) higher gross/operating margins as they c
Slide 13: Driven by Wall Street Ready Management Team
Driven by Wall Street Ready Management Team Hil Davis CHIEF EXECUTIVE OFFICER Reid Yeoman CHIEF FINANCIAL 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
Slide 14: Executive Board Member
EXECUTIVE BOARD MEMBER Jameeka Green Aaron is the Chief Information Security Officer at Auth0, she is responsible for the holistic security and compliance of Auth0’s platform, products, and corporate environment. Auth0 provides a platform to authenticate, authorize, and secure access for application
Slide 15: Current Portfolio of Brands
Current Portfolio of Brands 15
Slide 16: Brand profile: The Purpose
16 16 • 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 25 –
Slide 17: Brand profile: premium suiting and sportswear
17 • 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 driven by
Slide 18: Brand profile: contemporary womenswear
18 18 • A contemporary 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 di
Slide 19: Brand profile: made-to-measure suiting
19 19 • 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. • Ready - to - wear is an expanding cate
Slide 20: Brand profile: West Coast inspired women's separates
20 20 • West Coast inspired style with an elevated basic assortment seamlessly blending both the luxe and casual aesthetic rooted in sustainability and quality. • Each of the Women’s separates emphasizes elegance and comfort which allows for sophisticated pairings that compliment any look versus bei
Slide 21: Summary Financial Results
Summary Financial Results 21 $3,034,216 $5,239,437 $7,785,859 $1,407,711 $559,682 $2,895,659 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 Net Revenue Gross Profit 2020 2021 2019
Slide 22: Key Investment Considerations
Key Investment Considerations 22 Complimentary Brand Portfolio Leverage E - Commerce Expertise as a a Digitally Native - First Retailer Extensive Industry Expertise and Relationships Focus on Organic Market Share Growth and Profit Margin Expansion
Slide 23: Alexander Capital, LP contact
Christopher Carlin Alexander Capital, LP ccarlin@alexandercapitallp.com 646.787.8890 May 2022