DBGI Announces Record E-Commerce Revenue Growth Year-Over-Year
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.
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
Phone: (800) 593-1047
SOURCE Digital Brands Group, Inc.
Released October 21, 2021