Digital Brands Group, Inc. (DBG) is a Texas-based company with a diversified portfolio of apparel brands focusing on omnichannel sales, including online and physical retail, with recent financial challenges such as declining revenues and net losses.

# Company Overview Summary

## Business Description
- **Company Name:** Digital Brands Group, Inc. (DBG)
- **Type:** Curated collection of lifestyle apparel brands
- **Headquarters:** Austin, Texas
- **Business Model:** 
  - Offers apparel products through **direct-to-consumer (DTC)** channels, wholesale, and licensing (royalty revenue)
  - Operates multiple brands under one portfolio for cross-merchandising and operational efficiencies
  - Focuses on omnichannel strategy, blending online and physical retail, including some store presence

## Brands in Portfolio
- **Bailey 44:** 
  - Women’s sophisticated ready-to-wear; emphasizes comfort over runway aesthetics
  - Primarily wholesale, transitioning to direct-to-consumer
- **DSTLD:** 
  - Focuses on minimalist design, high-quality essentials, rooted in denim
  - Primarily DTC
- **Stateside:** 
  - Elevated American basics; locally sourced and manufactured in Los Angeles
  - Mainly wholesale, transitioning to DTC
- **Sundry:** 
  - Women’s coastal casual and resort wear; French chic influence
  - Primarily wholesale, transitioning to DTC
- **Avo:** 
  - Women’s essentials offering t-shirts, sweats, dresses, and athleisure
  - Sharp price point, leverages existing manufacturing infrastructure
- **ACE Studios:** 
  - Men’s luxury suiting with high-performance fabrics
  - Discontinued in Q2 2024

## Operations & Distribution
- Products sold online via owned websites and showrooms
- Wholesale distribution in specialty and department stores, and online multi-brand platforms
- Uses a build-your-own bundle strategy to increase cart size and margins
- Leverages data analytics and customer insights to optimize inventory and marketing

## Recent Developments 
- Opened then quickly closed a retail store at Simon Premium Outlet, Allen, TX (April-October 2024)
- Delisted from Nasdaq in October 2024; now quoted on OTC Pink Market
- Executed multiple financing rounds, including:
  - A PIPE offering raising approximately $7.5 million (February 2025)
  - Various securities purchase agreements, promissory notes, warrants, and private placements
- Filed application to list on a national securities exchange (February 2025)
- Conducted recent equity and debt offerings, raising funds for operations and acquisitions

## Financials (2024 vs. 2023)
- **Revenue:** 
  - 2024: **$11.6 million**
  - 2023: **$14.9 million**
  - Decreased by approximately $3.4 million due to shipment delays and reduced e-commerce sales
- **Gross Profit:** 
  - 2024: **$3.6 million** (31.5% margin)
  - 2023: **$6.5 million** (43.9% margin)
  - Decline due to lower sales and inventory write-downs
- **Net Loss:** 
  - 2024: **$13.1 million** (from continuing operations)
  - 2023: **$10.3 million** (from continuing operations)
  - Increased loss primarily due to impairments and lower gross profit
- **Employees:** 
  - As of December 31, 2024: **41 full-time employees**
  
## Other Key Financial Data
- **Cash on hand:** Approximately **$164,431** (December 2024)
- **Working capital deficit:** **$16.1 million**
- **Debt:** 
  - Approximately **$6.5 million** outstanding as of December 2024
  - Notable debt includes promissory notes and other borrowings

## Summary
Digital Brands Group manages a diverse portfolio of apparel brands focused on omnichannel sales, aiming to leverage customer data for personalized marketing and inventory management. Despite recent revenue declines and net losses, the company has raised significant capital through equity offerings and debt to support growth and potential future acquisitions.

Digital Brands Group, Inc. is a curated collection of lifestyle brands focused on the design, production, and sale of apparel through direct-to-consumer, wholesale, and retail channels.

## Digital Brands Group, Inc. Overview

**Company Name:** Digital Brands Group, Inc.  
**Location:** Austin, Texas  
**Founded:** September 17, 2012 (originally as Denim.LA LLC)  
**Incorporation:** Converted to Delaware corporation in 2013

### Business Model

Digital Brands Group, Inc. is a curated collection of lifestyle brands primarily engaged in the design, production, and sale of apparel through various channels, including:

- **Direct-to-Consumer (DTC):** Products are sold directly to consumers through the company’s websites.
- **Wholesale Distribution:** The company sells its products to specialty stores and select department stores to expand market reach.
- **Retail Stores:** Plans for retail locations, with a focus on strategic store openings.

### Brand Portfolio

The company's portfolio consists of the following significant brands:

1. **Bailey 44:** Focuses on luxe fabrics and sophisticated ready-to-wear for women. Primarily a wholesale brand transitioning to a digital DTC model.
2. **DSTLD:** Offers stylish, high-quality garments without luxury retail markup. Primarily a digital DTC brand, recently adding select wholesale retailers.
3. **Stateside:** Known for its American-made products. Transitioning from wholesale to digital DTC.
4. **Sundry:** Caters to casual women's clothing, inspired by coastal aesthetics, and primarily operates as a wholesale brand moving to DTC.

### Financial Highlights

- **Revenue:** 
  - Total revenue for the year ended December 31, 2023, was approximately **$14.9 million**, increasing from **$10.3 million** in 2022.
  
- **Gross Profit:**
  - For 2023, gross profit stood at **$6.5 million**, with a gross margin of **43.9%** (up from **34.3%** in 2022).
  
- **Net Loss:**
  - The net loss for 2023 was approximately **$10.2 million**, compared to a loss of **$38.0 million** in 2022.
  
- **Number of Customers:** The company aims to grow its customer base through both online and traditional wholesale distribution channels but specific numerical data on active customers hasn't been disclosed.

### Operations and Workforce

- **Employees:** Number of employees is not specified, but the company operates through various departments for sales, marketing, and operational management.
  
- **Licensing Deals:** Entered into a licensing deal for Bailey 44, generating approximately **$124,000** in revenue since November 2023.

- **Store Operations:** The company plans to open a retail store in Allen, Texas in April 2024, anticipating annual revenue of **over $1.5 million** and free cash flow exceeding **$500,000**.

### Strategic Focus

Digital Brands Group emphasizes a direct relationship with its customers through data analytics and targeted marketing, aiming to increase "closet share" by leveraging multiple sales channels to create a cohesive shopping experience. Their strategy focuses on expanding gross margins and improving operational efficiencies through the integration of acquired brands.

### Challenges

The company faces substantial debt of approximately **$9.7 million** as of December 31, 2023, with operational losses raising significant doubt about its ability to continue as a going concern. Furthermore, the company is involved in various legal and operational disputes, which could impact future financial results. 

Digital Brands Group is navigating the evolving retail environment while adapting its business strategies to improve profitability and operational sustainability.

Digital Brands Group, Inc.

10-K / April 9, 2025

10-K / June 3, 2024

10-K / April 9, 2025

Company Overview Summary

Business Description

Brands in Portfolio

Operations & Distribution

Recent Developments

Financials (2024 vs. 2023)

Other Key Financial Data

Summary