Digital Brands Group (DBGI)
NASDAQ:DBGI
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Digital Brands Group
(NASDAQ:DBGI)
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Rating:42Neutral
Price Target:
$1.50
▼(-91.24% Downside)
Action:ReiteratedDate:04/21/26
The score is driven primarily by weak financial performance (shrinking revenue, margin compression, large losses, and ongoing cash burn) and bearish technicals (below major moving averages with negative MACD). Corporate events provide some near-term liquidity support, but reliance on equity-linked financing and dilution risk temper the benefit, while valuation is constrained by ongoing losses and no dividend.
Positive Factors
Direct-to-Consumer + Wholesale Channels
DBGI’s dual distribution model (direct‑to‑consumer e‑commerce plus wholesale) supports durable revenue diversification and customer data capture. DTC channels enable higher margin potential and owned customer relationships, while wholesale provides broader retail reach and lowers single‑channel concentration risk.
Negative Factors
Rapid Revenue Decline
Sharp, consecutive revenue declines signal persistent demand or execution issues. Loss of scale impairs marketing ROI and supplier leverage, increases per‑unit fixed costs, and makes restoring prior margins and profitability structurally more difficult absent material product or channel improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Direct-to-Consumer + Wholesale Channels
DBGI’s dual distribution model (direct‑to‑consumer e‑commerce plus wholesale) supports durable revenue diversification and customer data capture. DTC channels enable higher margin potential and owned customer relationships, while wholesale provides broader retail reach and lowers single‑channel concentration risk.
Read all positive factors
Digital Brands Group (DBGI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.61M
Dividend YieldN/A
Average Volume (3M)460.55K
Price to Earnings (P/E)―
Beta (1Y)0.79
Revenue Growth-36.13%
EPS Growth97.45%
CountryUS
Employees41
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)-1.18
Shares Outstanding16,629,372
10 Day Avg. Volume126,535
30 Day Avg. Volume460,552
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)20.18
Price to Sales (P/S)23.98
P/FCF Ratio-11.15
Enterprise Value/Market Cap0.67
Enterprise Value/Revenue2.14
Enterprise Value/Gross Profit15.00
Enterprise Value/Ebitda-0.62
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Digital Brands Group Business Overview & Revenue Model
Company Description
Digital Brands Group, Inc. provides apparel under various brands on direct-to-consumer and wholesale basis. The company offers denims under the DSTLD brand; and luxury men's suiting under the ACE Studios brand. It also designs, manufactures, and s...
How the Company Makes Money
DBGI generates revenue primarily by selling branded apparel and related products. Its core revenue streams are (1) direct-to-consumer sales through its e-commerce sites, where it captures product revenue directly from end customers, and (2) wholes...
Digital Brands Group Earnings Call Summary
Earnings Call Date:Nov 14, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:May 25, 2026
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with significant achievements such as a successful partnership with VaynerCommerce and substantial debt reduction, contrasted by challenges like revenue decline and macroeconomic headwinds. The company's strategic shift towards growth and cost reductions are promising, but they are yet to fully offset the current revenue challenges.Positive Updates
Partnership with VaynerCommerce
The partnership with VaynerCommerce has resulted in a 34% increase in daily digital revenues and a 7% increase in average order volume over a 17-day period. This partnership is part of a multistep growth strategy.
Negative Updates
Revenue Decline
Net revenues decreased to $2.4 million from $3.3 million a year ago, partly due to walking away from a large wholesale account with negative cash contribution.
Read all updates
Q3-2024 Updates
Positive
Negative
Partnership with VaynerCommerce
The partnership with VaynerCommerce has resulted in a 34% increase in daily digital revenues and a 7% increase in average order volume over a 17-day period. This partnership is part of a multistep growth strategy.
Read all positive updates
Company Guidance
In the Digital Brands Group Q3 2024 earnings call, significant guidance was provided regarding their strategic shift from debt reduction to growth initiatives. The company reported a 34% increase in daily digital revenues and a 7% rise in average order volume, attributed to their partnership with VaynerCommerce. They plan to launch several initiatives, including influencer campaigns and limited edition product capsules, as part of a broader growth strategy. Additionally, DBGI anticipates a $4.5 million increase in earnings for 2025 due to reduced amortized noncash expenses and interest, alongside an expected $500,000 annual boost to gross margins from a wholesale price increase at Sundry. Despite a decline in net revenues to $2.4 million from $3.3 million the previous year, the company's net loss improved to $3.5 million from $5.4 million, highlighting their focus on profitability over revenue growth.Digital Brands Group Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
38
Negative
Cash Flow
14
Very Negative
| Breakdown | Dec 2025 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 7.38M | 11.56M | 14.92M | 10.33M | 7.58M |
| Gross Profit | 1.05M | 3.64M | 6.54M | 3.54M | 1.87M |
| EBITDA | -25.65M | -7.78M | 449.72K | -16.50M | -28.57M |
| Net Income | -28.25M | -13.11M | -10.25M | -38.04M | -32.36M |
Balance Sheet | |||||
| Total Assets | 44.49M | 19.89M | 25.34M | 33.74M | 36.49M |
| Cash, Cash Equivalents and Short-Term Investments | 1.93M | 164.43K | 20.77K | 1.28M | 528.39K |
| Total Debt | 6.12M | 6.55M | 8.67M | 13.80M | 18.62M |
| Total Liabilities | 35.72M | 21.22M | 23.73M | 41.19M | 43.58M |
| Stockholders Equity | 8.77M | -1.33M | 1.60M | -7.45M | -7.09M |
Cash Flow | |||||
| Free Cash Flow | -15.88M | -6.15M | -6.04M | -10.58M | -14.26M |
| Operating Cash Flow | -15.88M | -6.15M | -6.01M | -10.57M | -14.22M |
| Investing Cash Flow | 0.00 | 0.00 | 88.82K | -7.31M | -6.01M |
| Financing Cash Flow | 23.39M | 6.30M | 4.66M | 18.64M | 20.18M |
Digital Brands Group Technical Analysis
Negative
17.13
Price Trends
3.18
Negative
6.70
Negative
7.93
Negative
Market Momentum
-0.45
Negative
38.05
Neutral
35.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DBGI, the sentiment is Negative. The current price of 17.13 is above the 20-day moving average (MA) of 1.89, above the 50-day MA of 3.18, and above the 200-day MA of 7.93, indicating a bearish trend. The MACD of -0.45 indicates Negative momentum. The RSI at 38.05 is Neutral, neither overbought nor oversold. The STOCH value of 35.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DBGI.
Digital Brands Group Risk Analysis
Digital Brands Group disclosed 40 risk factors in its most recent earnings report. Digital Brands Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Digital Brands Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
53 Neutral | $129.26M | -5.06 | -9.82% | ― | -9.81% | 64.57% | |
51 Neutral | $91.11M | 3.76 | -21.26% | ― | -2.79% | 62.29% | |
51 Neutral | $151.06M | 3.74 | -17.71% | ― | 7.71% | ― | |
49 Neutral | $59.06M | -0.32 | -123.95% | ― | -21.84% | 17.59% | |
46 Neutral | $30.83M | -1,135.68 | -326.53% | ― | -10.64% | 75.40% | |
42 Neutral | $23.61M | -6.26 | -186.22% | ― | -36.13% | 97.45% |
* Consumer Cyclical Sector Average
DBGI
Digital Brands Group
1.42
-7.67
-84.38%
TLYS
Tilly's
3.93
2.43
162.00%
DLTH
Duluth Holdings
3.39
1.63
92.61%
RENT
Rent the Runway
4.52
0.68
17.71%
BIRD
Allbirds
6.74
1.67
32.94%
LVLU
Lulu's Fashion Lounge Holdings
10.79
4.49
71.27%
Digital Brands Group Corporate Events
Private Placements and FinancingRegulatory Filings and Compliance
Digital Brands Group Establishes ATM Equity Offering Agreement
Neutral
Apr 21, 2026
On April 15, 2026, Digital Brands Group, Inc. entered into an at-the-market issuance sales agreement with Aegis Capital Corp. that allows the company to issue and sell up to $100 million of its common stock from time to time under an effective she...
Private Placements and FinancingRegulatory Filings and Compliance
Digital Brands Group Amends Warrant Agreements to Raise Capital
Positive
Apr 20, 2026
On February 16, 2026, Digital Brands Group, Inc. entered into letter agreements with four existing warrant holders under which they agreed to immediately exercise 2,365,968 existing common share purchase warrants at $0.66 per share and to exercise...
Business Operations and StrategyPrivate Placements and Financing
Digital Brands Group Launches NIL Consulting and Equity Deal
Positive
Mar 18, 2026
On March 12, 2026, Digital Brands Group, Inc. entered into a three-year consulting agreement with Athlete Capital Sports LLC to guide the company’s participation in Pennsylvania State University’s NIL program for student-athletes, runn...
Business Operations and Strategy
Digital Brands Group Appoints New Securities Transfer Agent
Neutral
Mar 12, 2026
On March 5, 2026, Digital Brands Group, Inc. terminated VStock Transfer, LLC as its transfer agent and appointed ClearTrust LLC to serve as its new transfer agent and registrar for the company’s securities. As part of the change, all shareho...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Digital Brands Group Announces New Warrant Agreements and Financing
Positive
Feb 17, 2026
On February 16, 2026, Digital Brands Group entered into letter agreements with certain holders of 12,000,000 existing common share purchase warrants, which were set to expire on February 17, 2026 at an exercise price of $0.66, leading to the immed...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.