EXCLUSIVE: Digital Brands Expects Q1 Revenues To Jump 46%

Digital Brands Group Inc DBGI expects Q1 FY23 revenues to be approximately $5.0 million, an increase of 46.5% year-over-year. 

Hil Davis, CEO stated, "Our 2023 first quarter reflected the strategic decision to lower advertising spend as we onboarded a performance marketing agency, which resulted in two months of significantly lower e-commerce revenues."

However, since the performance marketing began, we have seen our monthly e-commerce revenue double from January levels. The increase in our e-commerce revenues associated with the new performance marketing agency will be even more fully reflected in our second quarter revenues." Davis added.

Davis continued, "Our first quarter results will also include the results of our Sundry acquisition...We will see significant leverage on our fixed operating costs and a clear path to free cash flow and profitability in the third quarter."

Price Action: DBGI shares are down 5.06% at $0.75 premarket on the last check Thursday.