Financial Performance - For the three months ended September 30, 2025, the company generated net revenues of $1.6 million, a decrease of $0.8 million from $2.4 million in the same period in 2024[207][209]. - Gross profit for the same period was $0.7 million, down from $1.1 million in 2024, resulting in a gross margin of 43%, compared to 46% in the prior year[207][211][213]. - Operating expenses totaled $4.0 million for the three months ended September 30, 2025, consistent with $3.9 million for the same period in 2024[214]. - The company reported a net loss of $3.5 million for the three months ended September 30, 2025, unchanged from the loss reported in 2024[207][216]. - Net revenues decreased by $3.6 million to $5.8 million for the nine months ended September 30, 2025, compared to $9.4 million in 2024, primarily due to dropping the largest wholesale account and limited cash for marketing[218]. - Gross profit decreased by $2.1 million to $2.3 million for the nine months ended September 30, 2025, from $4.4 million in 2024, with a gross margin of 40% compared to 47% in the prior year[221][222]. - Operating loss increased to $7.3 million for the nine months ended September 30, 2025, compared to $4.7 million in 2024[218]. - Net loss was $7.7 million for both the nine months ended September 30, 2025, and 2024, maintained due to effective cost-cutting measures[226]. Debt and Cash Flow - Digital Brands Group's total outstanding debt as of September 30, 2025, is approximately $6.4 million, which is considered significant for the company's size and revenue base[164]. - The company has an accumulated deficit of $134.8 million as of September 30, 2025[207]. - Cash provided by financing activities was $23.4 million for the nine months ended September 30, 2025, compared to $3.7 million in 2024, including $6.6 million from common stock issuance[234]. - Cash used in operating activities increased by $7.8 million to $11.2 million for the nine months ended September 30, 2025, driven by higher operational losses[232]. - As of September 30, 2025, the company had cash of $6.7 million and a working capital deficit of $4.8 million[229]. Operational Strategy - The company aims to expand its customer base through both online and traditional wholesale channels, utilizing paid and organic online strategies as well as physical retail distribution[170]. - Digital Brands Group's strategy includes transitioning several brands from wholesale to direct-to-consumer models, enhancing customer engagement and retention[156]. - The company defines "closet share" as the percentage of a customer's clothing units that belong to its brands, with a higher closet share indicating increased revenue potential[159]. - The company anticipates that operating expenses will increase in absolute dollars due to brand acquisitions, but expects operating expenses as a percentage of revenue to decrease over time[170]. - The company has successfully eliminated several million in expenses within six months of acquiring Bailey, including merging technology contracts and reducing office space costs[171]. - The company is focused on achieving near-term free cash flow through cash flow positive acquisitions and reducing redundant expenses[171]. - The company has identified the need to balance marketing spend between online and offline channels to effectively acquire customers at a reasonable cost[170]. - The company expects gross margins to expand as revenues increase and leverage fixed costs, with a higher mix of e-commerce revenue[223]. Marketing and Investments - The company plans to invest approximately $1 million in marketing, technology, and product development by the end of 2025[201][205]. - The company signed an Exclusive Private Label Manufacturing Agreement with AAA Tuscaloosa, LLC to manufacture private label knit apparel products for the University of Alabama[200]. - The company completed a Series D Preferred Stock offering, raising approximately $12.7 million before deducting offering costs[196][199]. - The second largest wholesale account requested to double the number of domestic retail doors from 50 to 100, which may offset the decline in wholesale revenue[219]. Cost Increases - The company has experienced increased costs in raw materials, with fabric prices rising between 10% to 100%, and shipping costs increasing from 25% to 300% depending on various factors[162]. - The company expects to continue incurring additional expenses related to operating as a public company, which will increase overall operating costs[178].

Austin, TX, Nov. 14, 2025 (GLOBE NEWSWIRE) -- Digital Brands Group, Inc. (“DBG”) (NASDAQ: DBGI), a curated collection of luxury lifestyle, digital-first brands, today reported financial results for its third quarter ended September 30, 2025. “Our third quarter results reflect our legacy wholesale business and not our significantly growing collegiate business. We have seen the wholesale revenues bottom out and are experiencing higher bookings for our Spring 2026 wholesale orders versus the same period last y ...

Austin, Texas, Nov. 14, 2025 (GLOBE NEWSWIRE) -- Digital Brands Group, Inc. (NASDAQ:DBGI) (the “Company,” “Digital Brands Group” or “DBG”) today announces its partnership with SECUR3D Inc (“SECUR3D”). to expand its suite of technology tools for eCommerce brands. These collaborations strengthen the Company’s ability to protect brand assets and accelerate growth through next-generation AI solutions. SECUR3D is a leader in brand and intellectual property protection. Its suite of proprietary AI-powered tools is ...

Austin, Texas, Nov. 12, 2025 (GLOBE NEWSWIRE) -- Digital Brands Group, Inc. (NASDAQ:DBGI) (the “Company,” “Digital Brands Group” or “DBG”) today announces its partnerships with Secur3D.ai to expand its suite of technology tools for eCommerce brands. These collaborations strengthen the Company’s ability to protect brand assets and accelerate growth through next-generation AI solutions. Secur3D is a leader in brand and intellectual property protection. Its AssetSafe™ platform uses AI automation to scan market ...

Austin, Texas, Nov. 06, 2025 (GLOBE NEWSWIRE) -- Digital Brands Group, Inc. (NASDAQ:DBGI) (the “Company” or “DBG”) today announces its second AVO College Influencer Tour at the University of Alabama for the LSU Tigers vs Alabama Crimson Tide football game this Saturday, November 8th in Tuscaloosa, AL. The AVO College Influencer Tour will feature the following amazing and influencers and athletes: Darcy McQueeny, Alabama Alumni, tastemaker who shares her favorite products across multiple platforms, including ...

Core Insights - Digital Brands Group, Inc. has initiated advanced quantum computing initiatives through Microsoft Azure Quantum to enhance its eCommerce operations [1][2][3] Group 1: Quantum Computing Initiatives - The company is exploring quantum machine learning and quantum-inspired algorithms to optimize data processing, security, and customer engagement in eCommerce [2][3] - Initial areas of exploration include hyper-personalized recommendations, customer clustering, and quantum-resilient data protection [7] Group 2: Strategic Positioning - The CEO of Digital Brands Group emphasized that quantum computing could reshape data security, optimization, and customer engagement, positioning the company as a leader in personalized commerce [3] - This initiative is a significant milestone in the company's technology roadmap, focusing on integrating frontier computing, AI, and advanced data protection [3] Group 3: Business Model - Digital Brands Group operates a diverse portfolio of consumer brands, focusing on direct-to-consumer and wholesale channels [4] - The company aims to leverage customer data and purchase history to create personalized content and enhance customer experience [4]

Core Insights - Digital Brands Group, Inc. is launching its first AVO College Influencer Tour at the University of Alabama during the football game between Alabama Crimson Tide and Tennessee Volunteers on October 18, 2025 [1] - The event will feature various influencers and athletes, providing a unique meet-and-greet opportunity for students, alumni, and fans [2][7] - Yea Alabama will receive a 20% royalty on all revenue generated from the AVO x Yea Alabama apparel collection, which aims to create future NIL market opportunities for female student-athletes [3] Company Initiatives - The AVO College Influencer Tour is designed to support women's sports and female student-athletes, showcasing the commitment of Digital Brands Group to this cause [4] - The company aims to provide high-quality products at competitive prices to universities and their communities, likening its approach to that of Warby Parker in the collegiate apparel space [5] - Digital Brands Group operates a diverse range of apparel brands and has a technology division focused on integrating advanced technologies into its business model [5]

Core Insights - Digital Brands Group, Inc. is launching a strategic initiative to expand its presence in the Name, Image, and Likeness (NIL) college apparel sector, which is part of a global licensed sports merchandise market projected to grow from $36.4 billion in 2024 to $49.0 billion by 2030 [1]. Expansion Strategy & Competitive Positioning - The company has signed an exclusive three-year private label manufacturing agreement with Yea Alabama, the official NIL program of the University of Alabama, allowing DBGI to design, manufacture, and distribute collegiate apparel exclusively through university-affiliated channels [2]. - The initial product line is available now, with plans for new capsule collections to be released in October, November, and December 2025 [3]. - The CEO of Digital Brands Group likens the company's model to "the Warby Parker of collegiate apparel," emphasizing a direct-to-consumer, data-driven approach [3]. Next Phase - The company is in discussions to replicate the Alabama partnership model with additional universities, offering benefits such as private label manufacturing, equity alignment, support for female student athletes, and agility through consumer data [4][5][6]. - Each partnership will provide university right holders with a private label manufacturing advantage, allowing for high-quality collegiate apparel at lower prices compared to traditional offerings [4]. - The initiative aims to create unique partnerships that align interests and provide upside participation for university right holders, particularly focusing on generating opportunities for female student athletes [5].

Core Insights - Digital Brands Group has joined Oracle PartnerNetwork to enhance its technology capabilities and accelerate the development of its technology tools for apparel and eCommerce brands [1][3] - The company is focusing on a differentiated model that integrates apparel with advanced solutions like AI-powered intellectual property protection and automated marketing [2][3] Company Overview - Digital Brands Group offers a variety of apparel through direct-to-consumer and wholesale channels, leveraging customer data to create personalized content [4] - The company aims to safeguard authenticity and strengthen consumer trust while driving long-term growth in lifestyle and collegiate markets, particularly in the NIL collegiate apparel sector [2][3] Strategic Initiatives - The partnership with Oracle will enhance operational agility, expand data-driven insights, and support the integration of authenticity, protection, and marketing tools [3] - Digital Brands Group is positioning itself to capture growth in multi-billion dollar markets by addressing challenges such as IP infringement and consumer data protection [3]

Core Viewpoint - Digital Brands Group, Inc. is launching a strategic initiative to expand its presence in the Name, Image, and Likeness (NIL) college apparel sector, which is part of a global licensed sports merchandise market projected to grow from $36.4 billion in 2024 to $49.0 billion by 2030 [1]. Expansion Strategy & Competitive Positioning - The company has signed an exclusive three-year private label manufacturing agreement with Yea Alabama, the official NIL program of the University of Alabama, allowing DBGI to design, manufacture, and distribute collegiate apparel exclusively through university channels [2]. - The initial product line is available now, with plans for new capsule collections to be released in October, November, and December 2025 [3]. Next Phase - The company aims to replicate the Alabama partnership model with additional universities, offering benefits such as: 1. Private Label Manufacturing Advantage, providing high-quality collegiate apparel at lower prices [4]. 2. Equity Alignment, where universities become equity partners, creating a unique alignment of interests [5]. 3. Support for female student athletes, with 20% of every purchase going to female student athletes through the university's NIL fund [5]. 4. Agility and Consumer Data, enabling faster and trend-responsive collections through a nimble supply chain [6]. About Digital Brands Group - Digital Brands Group operates a variety of apparel brands through both direct-to-consumer and wholesale channels, focusing on a digitally native-first vertical brand model [7].