AUSTIN, Texas, Oct. 21, 2021 /PRNewswire/ -- Digital
Brands Group, Inc. ("DBGI") (NASDAQ: DBGI), a
curated collection of luxury lifestyle, digital-first brands, today
announces record e-commerce revenue growth year-over-year as DBGI
turned on digital advertising for Bailey 44 and DSTLD the first
time in over eighteen months.
Bailey's 44 experienced a 376% increase in e-commerce revenue
year-over-year since September
27th, when Bailey 44 started its advertising
plan. This 376% increase was driven by approximately $20,000 in digital advertising spend. We expect
to spend over $200,000 in digital
advertising spend through the end of the year versus $0 in the year ago period.
DSTLD experienced a 52% increase in e-commerce revenue
year-over-year on $8,000 in digital
advertising spend since October
10th, when DSLTD started its advertising
plan. DSTLD also experienced a 24% increase in its average
order volume and a 76% increase in new customers. We expect
to spend over $300,000 in digital
advertising spend through the end of the year versus $0 in the year ago period.
"We have to warm up the digital advertising channels to build
the upper funnel campaigns and capture the behavioral lost with the
lack of activity over the last eighteen months," said Laura Dowling, Chief Marketing Officer of
Digital Brands Group.
"We expect to see a significant ROI and an increase in our
year-over-year revenue on our digital advertising spend as we
transition from the warm-up phase to our knowledge and targeted
phase, especially as we move into 2022 and spend millions in
digital advertising spend across all our brands."
Hil Davis, Chief Executive
Officer of Digital Brands Group, stated that "we are excited to
finally move into our growth phase, and believe this shows the
power of our platform and the growth opportunity for 2022 and
beyond. In fact, our 2022 revenue guidance does not reflect
the ROI and revenue increase we are currently experiencing on our
digital advertising spend."
Finally, as we discussed in our S-1, we expect to continue to
grow through acquisitions and expect to continue to acquire
companies this year, most of which will require GAAP PCAOB audits.
These audits take time, which results in a delayed acquisition
timeframe weighted toward the back three to four months of
2021.
Forward-looking Statements
Certain statements included in this release are "forward-looking
statements" within the meaning of the federal securities laws.
Forward-looking statements are made based on our expectations and
beliefs concerning future events impacting 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 "may" and other
words and terms of similar meaning or use of future dates, however,
the absence of these words or similar expressions does not mean
that a statement is not forward-looking. All statements regarding
DBG's plans, objectives, projections and expectations relating to
DBG's operations or financial performance, and assumptions related
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
the forward-looking statements. DBG undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, except
as required by law. Potential risks and uncertainties that could
cause the actual results of operations or financial condition of
DBG to differ materially from those expressed or implied by
forward-looking statements include, but are not limited to: risks
arising from the widespread outbreak of an illness or any other
communicable disease, or any other public health crisis, including
the coronavirus (COVID-19) global pandemic; the level of consumer
demand for apparel and accessories; disruption to DBGs distribution
system; the financial strength of DBG's customers; fluctuations in
the price, availability and quality of raw materials and contracted
products; disruption and volatility in the global capital and
credit markets; DBG's response to changing fashion trends, evolving
consumer preferences and changing patterns of consumer behavior;
intense competition from online retailers; manufacturing and
product innovation; increasing pressure on margins; DBG's ability
to implement its business strategy; DBG's ability to grow its
wholesale and direct-to-consumer businesses; retail industry
changes and challenges; DBG's and its vendors' ability to maintain
the strength and security of information technology systems; the
risk that DBG's facilities and systems and those of our third-party
service providers may be vulnerable to 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 DBG's manufacturing facilities and
foreign suppliers; continued use by DBG's suppliers of ethical
business practices; DBG's ability to accurately forecast demand for
products; continuity of members of DBG's management; DBG's ability
to protect trademarks and other intellectual property rights;
possible goodwill and other asset impairment; DBG's ability to
execute and integrate acquisitions; changes in tax laws and
liabilities; legal, regulatory, political and economic risks;
adverse or unexpected weather conditions; DBG's indebtedness and
its ability to obtain financing on favorable terms, if needed,
could prevent DBG from fulfilling its financial obligations; and
climate change and increased focus on sustainability issues. More
information on 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
Quarterly Reports on Form 10-Q, and Forms 8-K filed or furnished
with the SEC.
About Digital Brands
Group
We offer a wide variety of apparel through
numerous brands on a both direct-to-consumer and wholesale basis.
We have created a business model derived from our founding as a
digitally native-first vertical brand. Digital native first brands
are brands founded as e-commerce driven businesses, where online
sales constitute a meaningful percentage of net sales, although
they often subsequently also expand into wholesale or direct retail
channels., Unlike typical e-commerce brands, as a digitally native
vertical brand we control our own distribution, sourcing products
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 looks for that specific customer
cohort. We have strategically expanded into an omnichannel brand
offering these styles and content not only on-line but at selected
wholesale and retail storefronts. We believe this approach allows
us opportunities to successfully drive Lifetime Value ("LTV") while
increasing new customer growth.
Digital Brands Group, Inc. Company Contact
Hil Davis, CEO
Email: invest@digitalbrandsgroup.co
Phone: (800) 593-1047
Related Links
https://www.digitalbrandsgroup.co
https://ir.digitalbrandsgroup.co
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SOURCE Digital Brands Group, Inc.