DBGI Provides Revenue Updates, Reservations, and Advice
|Estimated turnover for the fourth quarter and fiscal year 2021 in line with previous forecasts|
|125% increase in wholesale bookings in Q1 2022|
|Reaffirming the revenue and EBITDA forecasts for fiscal year 2022|
AUSTIN, Texas, Jan.7, 2022 / PRNewswire / – Digital Brands Group, Inc. (“DBGI”) (NASDAQ: DBGI), a curated collection of digitally-driven, luxury lifestyle brands, today announces that it provides an update on fourth quarter and full year 2021 net income. Additionally, the company reaffirms its previous forecast of net sales and EBITDA for 2022. Finally, the company reports that its wholesale bookings in the first quarter of 2022 have increased by 125% compared to the same period a year ago thanks to Bailey 44 and in the USA.
Fourth Quarter and Fiscal Year 2021 Revenues Update
Estimated fourth quarter 2021 revenue is expected to be in line with our previous guidance of approximately $ 4 million. Fourth quarter revenue was slightly impacted due to supply chain delays experienced by the garment industry globally. The delays were due to some of our products stuck in transport, which were limited to our Bailey 44 brand.
Fiscal 2021 estimated net revenue is expected to increase 44% to $ 7.6 million, from $ 5.2 million a year ago. Net revenue for fiscal 2021 does not include all of the 2021 net revenue for Harper & Jones or Stateside, as these brands were acquired in fiscal 2021. Therefore, we only recognized the net income generated from the date of acquisition until the end of the financial year. year. We acquired Harper & Jones on May 14, 2021 and we acquired Stateside on August 30, 2021.
Wholesale bookings in the first quarter of 2022 increased by 125%
Q1 2022 wholesale bookings recorded in Q4 2021 were up 125% year-over-year thanks to an increase in our Bailey 44 and Stateside brands. These two brands are our two biggest brands in the portfolio, and wholesaling accounts for over 85% of their combined revenue. We still expect to receive additional wholesale bookings for the first quarter of 2022.
Hil Davis, Chief Executive Officer of Digital Brands Group, said, “Our fourth quarter sales performance is a continuation of the sequential quarter-over-quarter growth we’ve seen in the past. during the first three quarters of 2021, driven by both wholesale and e-commerce. This momentum has grown significantly, as evidenced by our very strong wholesale bookings in the first quarter and our growth of new e-commerce customers across all of our brands. ”
Reaffirming the revenue and EBITDA forecasts for fiscal year 2022
We reaffirm our forecast of net revenues for the prior year 2022 of $ 37.5 million to $ 42.5 million. This is an expected increase of approximately 350% over our updated net revenues for fiscal 2021.
Additionally, the Company expects positive EBITDA for 2022 as it leverages its shared services platform. “Our revenue forecast for 2022 reflects the strength 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, CEO of Digital Brands Group.
“This expected 350% increase in our year over revenue growth does not reflect any potential additional acquisitions, nor any significant benefit from the expected increase in our marketing spend. ”
“We expect to achieve positive EBITDA in 2022 due to the leverage we derive from our shared services platform. We are delighted with the cost savings we are achieving through this shared services platform, especially in relation to revenue-generating marketing initiatives. ”
You will find above certain preliminary and unaudited estimates of selected financial information for the quarter and fiscal year ended December 31, 2021. The following information reflects our preliminary estimates of these results based on information currently available, does not constitute a complete statement of our financial results and is subject to the completion of our financial close and audit procedures. Our financial close procedures for the year ended December 31, 2021 have not yet been completed and, therefore, our actual results may differ materially from these estimates. These estimates should not be considered a substitute for our complete financial statements prepared in accordance with US generally accepted accounting principles, or GAAP. Our preliminary estimated results are not necessarily representative of the results expected for a future period.
Bulk bookings on a given date represent purchase orders to be substantially shipped over the next six months. Our level of wholesale bookings are expected to fluctuate over any period of time and there can be no assurance that our wholesale bookings will result in actual revenue in any given period.
Certain statements included in this press release are “forward-looking statements” within the meaning of federal securities laws. Forward-looking statements are made on the basis of our expectations and beliefs regarding future events affecting DBG and therefore involve several risks and uncertainties. You can identify these statements by the fact that they use words such as “will”, “anticipate”, “estimate”, “expect”, “should” and “could” and other words and terms with meaning similar or use of future dates, however, the absence of such words or similar expressions does not mean that a statement is not forward-looking. All statements regarding DBG’s plans, objectives, projections and expectations regarding DBG’s operations or financial performance, and assumptions relating thereto, are forward-looking statements. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in forward-looking statements. DBG assumes no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. The potential risks and uncertainties that could cause DBG’s actual operating results or financial condition to differ materially from those expressed or implied by forward-looking statements include, without limitation: risks arising from the generalized epidemic of a disease or other communicable disease or any other public health crisis, including the global coronavirus pandemic (COVID-19); the level of consumer demand for clothing and accessories; disruption of the DBG distribution system; the financial strength of DBG’s customers; fluctuations in the price, availability and quality of raw materials and products under contract; disruption and volatility in global capital and credit markets and the global supply chain; DBG’s response to changing fashion trends, changing consumer preferences and changing consumer behavior; intense competition from online retailers; manufacturing and product innovation; growing pressure on margins; DBG’s ability to implement its business strategy; DBG’s ability to develop its wholesale and direct-to-consumer sales activities; changes and challenges in the retail industry; the ability of DBG and its suppliers to maintain the strength and security of IT systems; the risk that DBG’s facilities and systems and those of our third-party service providers may be vulnerable and unable to anticipate or detect data security breaches and data or financial loss; DBG’s ability to properly collect, use, manage and secure consumer and employee data; stability of the manufacturing facilities of DBG and foreign suppliers; continued use by DBG suppliers of ethical business practices; DBG’s ability to accurately forecast product demand; continuity of members of the management of DBG; DBG’s ability to protect trademarks and other intellectual property rights; possible goodwill and other impairment of assets; DBG’s ability to execute and integrate acquisitions; changes in tax laws and tax obligations; legal, regulatory, political and economic risks; adverse or unexpected weather conditions; DBG’s indebtedness and its ability to obtain financing on favorable terms, if applicable, could prevent DBG from meeting its financial obligations; and climate change and increased attention to sustainability issues. More information about potential factors that could affect DBG’s financial results is included from time to time in DBG’s public reports filed with the SEC, including DBG’s annual report on Form 10-K and reports. quarterly on Form 10-Q and Forms 8-K filed or provided to the SEC.
About Digital Brands Group
We offer a wide variety of apparel through many brands, both direct to consumer and wholesale. We created a business model derived from our foundation as a digital native vertical brand. The first digital native brands are brands that were founded as e-commerce-focused businesses, where online sales make up a significant percentage of net sales, although they often subsequently expand into online sales channels as well. wholesale or retail direct. Unlike typical e-commerce brands, as a digital native vertical brand, we control our own distribution, sourcing directly from our third-party manufacturers and selling directly to the end consumer. We focus on owning the customer’s “closet share” by leveraging their data and purchase history to create personalized, targeted content and research that specific cohort of customers. We’ve strategically expanded to be an omnichannel brand offering these styles and content not only online, but in select wholesale and retail storefronts. We believe this approach provides us with opportunities to successfully generate Lifetime Value (“LTV”) while increasing the growth of new customers.
Digital Brands Group, Inc.
Hil davis, CEO
Email: [email protected]
Telephone: (800) 593-1047
SOURCE Digital Brands Group, Inc.