Breaking News
Investing Pro 0
Black Friday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

Digital Brands Group Falls 14% After Updated Revenue Guidance

Stock Markets Jan 07, 2022 21:14
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
DBGI
+12.88%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Sam Boughedda

Investing.com — Shares of Digital Brands Group Inc (NASDAQ:DBGI), the collection of luxury lifestyle, digital-first brands, fell over 14% Friday after the company updated the market on its fourth quarter and fiscal year 2021 revenue guidance.

Fourth quarter revenue is predicted to come in line with the company's previous forecast of around $4 million. However, Digital Brands said revenue in the quarter was slightly affected by global supply chain delays in the apparel industry. 

"The delays were due to some of our products stuck in transport, which were limited to our Bailey 44 brand," the company said in its statement.

Meanwhile, DBGI's fiscal year 2021 net revenue is anticipated to increase 44%, to $7.6 million, versus $5.2 million a year ago. However, the revenue figure does not include the entire net revenue from 2021 for Harper & Jones or Stateside, as the company acquired the brands during fiscal year 2021.

Focusing on 2022, the company reaffirmed its fiscal year revenue guidance of $37.5 million to $42.5 million, representing around a 350% increase over the previous year. Furthermore, it forecasts a positive earnings before interest, taxes, depreciation and amortization for 2022.

"Our 2022 revenue guidance reflects the power of our brand portfolio, especially as we are able to benefit from the full year revenue contribution from our acquisitions in 2021," stated Hil Davis, CEO of Digital Brands.

"This forecasted increase of 350% in our year over revenue growth does not reflect any potential additional acquisitions, nor does it reflect any meaningful benefit from our expected increase in marketing spend."

Digital Brands Group Falls 14% After Updated Revenue Guidance
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email