Digital Brands Group, Inc., a curated collection of luxury lifestyle, digital-first brands, reported that net revenues for the second quarter increased 69.6 percent to $4.5 million compared, to $2.6 million in the year-ago quarter. DBGI shares were down approximately 15 percent at the close of trading on Thursday and down 96 percent over the last year.
“We are pleased to see the significant revenue growth and operating leverage since the acquisition of Sundry. In fact, based on wholesale bookings and current e-commerce trends, our third-quarter and fourth-quarter revenues will be meaningfully higher than this quarter. Additionally, we will continue to show a higher level of cost savings in our third and fourth quarters versus this quarter, ” said Hil Davis, CEO of Digital Brands Group.
- Gross profit increased 40.4 percent to $2.2 million, compared to $1.5 million in Q2 last year.
- G&A expenses, including non-cash items, decreased 4.0 percent to $4.1 million, compared to $4.2 million a year ago
- Sales & Marketing expenses decreased 20.1 percent to $1.1 million compared to $1.4 million in the year-ago quarter.
- Income from operations was $9.0 million in Q2 compared to a loss of $10.6 million in Q2 2022.
Net income attributable to common stockholders was $5.0 million, or 38 cents per diluted share, in the three-month period ended June 30, compared to a loss of $9.5 million, or a loss of $26.47 per diluted share, in the prior-year period.
“We are still on track to generate internal free cash flow in October and based on current trends we expect this internal free cash flow to increase every quarter,” added Davis, in a release.
Photo courtesy Digital Brands Group
