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Dive Brief:
- Digital Brands Group expects to generate between $27 million to $30 million in revenue for its 2024 fiscal year, the company announced in a release Wednesday.
- The company estimates Q1 revenue will approach about $6 million, based on $4.5 million in confirmed wholesale bookings.
- The fiscal 2024 projections don’t include operating expenses or net loss, which in the most recent quarter grew 51% and 11%, respectively.
Dive Insight:
Digital Brands Group first announced it was exploring strategic alternatives in November 2023, when CEO Hil Davis said the company believed it was severely undervalued. At the time, Davis said there was “continued dislocation” between the company’s public market value and the value of its underlying assets.
In the Wednesday announcement on the revenue projections, Davis said the company continues to review strategic alternatives, “especially given our assets and operating forecast relative to our public market value.”
“We have several options to maximize shareholder value, which we will pursue if this dislocation remains,” Davis said in the release.
In March 2023, Davis announced the company could go private, after being approached by a private equity firm, noting that “if the price were to come in lower than we expected and our valuation doesn’t change, we will hire bankers to go private.”
Digital Brands Group, whose portfolio includes Sundry, Stateside and Bailey 44, most recently reported Q3 net revenue increased 22.5% year over year to about $3.3 million.
For fiscal year 2023, the company initially predicted it would generate $45 million to $50 million in revenue. Its Q4 and 2023 earnings report is not yet scheduled.
via https://www.aiupnow.com
Laurel Deppen, Khareem Sudlow
