Digital Brands Group, Inc. (DBGI) stock plummeted 14.31% in the current-market trading session at the price of $2.24 following the issuance of bookings, revenue and guidance updates.
Digital Brands Group, through its multiple brands, offers a wide range of apparel on a wholesale and direct-to-consumer basis. Digital native first brands launched as e-commerce businesses, where online sales constitute a significant portion of net sales.
DBGI Provided Revenue, Bookings & Guidance Updates
On 7th January 2022, DBGI presented net revenue updates for its fourth quarter and the fiscal year 2021. The company has also reaffirmed its earlier announced net revenue guidance for the fiscal year 2022. Additionally, it reported a year-over-year rise of roughly 125% in wholesale bookings for the first quarter of fiscal 2022.
For the fourth quarter of 2021, DBGI expects net revenue to be in line with their earlier estimated forecast of $4M. For fiscal 2021, total revenue has expected to rise 44% to $7.6M from $5.2M a year ago. The company reaffirmed revenue to range from $37.5M to $42.5M as per its fiscal 2022 revenue guidance. It represents a 350% rise in net revenue from the fiscal year 2021.
Chief Executive Officer of Digital Brands Group, Hil Davis, remarked that their Q4 revenue growth continued the sequential quarter-over-quarter performance during the first three quarters of 2021. The revenue growth had driven by their e-commerce and wholesale businesses. The revenue growth has significantly increased, as reflected in their first-quarter high wholesale bookings and e-commerce client growth, he added.
Hil Davis further commented that their 2022 revenue guidance reflects the strength and potency of their brand portfolio. The revenue contribution from their acquisitions in 2021 will benefit them in long term. They hope to acquire positive EBITDA in fiscal 2022 by leveraging their shared services platform. They are happy about the cost savings that they are receiving from this shared services platform, Davis concluded.