Digital Brands Group (DBGI)
NASDAQ:DBGI
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Digital Brands Group
(NASDAQ:DBGI)
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Rating:41Neutral
Price Target:
$8.00
▼(-53.30% Downside)
Action:ReiteratedDate:02/03/26
The score is primarily constrained by weak financial performance—large operating losses, declining revenue, and ongoing cash burn—creating elevated execution and funding risk. Technicals also lean bearish with the stock below key moving averages and negative MACD. Recent corporate agreements are a positive offset, but they are not yet sufficient to outweigh the weak fundamentals.
Positive Factors
Multi-channel Business Model (DTC + Wholesale)
Operating both direct-to-consumer e-commerce and wholesale channels provides durable revenue diversification. DTC supports higher margins, customer data and lifetime value, while wholesale enables scale and retailer reach—helping stabilize sales as channel mix shifts over months.
Negative Factors
Persistent Cash Burn
Sustained negative operating and free cash flow indicates the business consumes cash to run operations. Over months this forces reliance on external financing or asset sales, raises execution risk, constrains reinvestment in product and marketing, and increases potential dilution.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-channel Business Model (DTC + Wholesale)
Operating both direct-to-consumer e-commerce and wholesale channels provides durable revenue diversification. DTC supports higher margins, customer data and lifetime value, while wholesale enables scale and retailer reach—helping stabilize sales as channel mix shifts over months.
Read all positive factors
Digital Brands Group (DBGI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.08M
Dividend YieldN/A
Average Volume (3M)460.55K
Price to Earnings (P/E)―
Beta (1Y)1.06
Revenue Growth-35.10%
EPS Growth98.56%
CountryUS
Employees41
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)-1.18
Shares Outstanding8,188,336
10 Day Avg. Volume126,535
30 Day Avg. Volume460,552
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)-0.23
Price to Sales (P/S)0.03
P/FCF Ratio-0.05
Enterprise Value/Market Cap0.53
Enterprise Value/Revenue0.94
Enterprise Value/Gross Profit3.29
Enterprise Value/Ebitda-0.56
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
Digital Brands Group makes money primarily through the direct-to-consumer sales of its branded apparel and accessories. The company leverages an e-commerce model, allowing it to reach customers directly through its online platforms. This approach ...
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
14
Very Negative
Balance Sheet
41
Neutral
Cash Flow
12
Very Negative
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 7.92M | 11.56M | 14.92M | 13.97M | 7.58M | 5.24M |
| Gross Profit | 2.25M | 3.64M | 6.54M | 5.94M | 2.90M | 553.68K |
| EBITDA | -13.15M | -10.20M | 449.72K | -13.77M | -28.57M | -8.51M |
| Net Income | -13.03M | -13.11M | -10.25M | -54.15M | -32.36M | -10.73M |
Balance Sheet | ||||||
| Total Assets | 41.19M | 19.89M | 25.34M | 33.74M | 36.49M | 16.35M |
| Cash, Cash Equivalents and Short-Term Investments | 6.70M | 164.43K | 20.77K | 1.28M | 528.39K | 575.99K |
| Total Debt | 6.40M | 6.55M | 8.67M | 13.80M | 18.62M | 14.11M |
| Total Liabilities | 25.21M | 21.22M | 23.73M | 41.19M | 43.58M | 22.21M |
| Stockholders Equity | 15.99M | -1.33M | 1.60M | -7.45M | -7.09M | -5.86M |
Cash Flow | ||||||
| Free Cash Flow | -13.99M | -6.15M | -6.04M | -10.58M | -14.26M | -2.06M |
| Operating Cash Flow | -14.01M | -6.15M | -6.01M | -10.57M | -14.22M | -2.06M |
| Investing Cash Flow | 101.08K | 0.00 | 88.82K | -7.31M | -6.01M | 204.88K |
| Financing Cash Flow | 26.03M | 6.30M | 4.66M | 18.64M | 20.18M | 2.39M |
Digital Brands Group Technical Analysis
Negative
17.13
Price Trends
4.39
Negative
7.27
Negative
8.34
Negative
Market Momentum
-0.83
Negative
32.87
Neutral
26.08
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 2.49, above the 50-day MA of 4.39, and above the 200-day MA of 8.34, indicating a bearish trend. The MACD of -0.83 indicates Negative momentum. The RSI at 32.87 is Neutral, neither overbought nor oversold. The STOCH value of 26.08 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% | |
56 Neutral | $127.99M | -2.54 | -21.26% | ― | -8.31% | 36.10% | |
53 Neutral | $113.60M | -5.06 | -9.82% | ― | -6.40% | 11.65% | |
46 Neutral | $32.37M | -28,714.66 | -326.53% | ― | -12.10% | -44.14% | |
45 Neutral | $171.30M | 0.05 | -6.46% | ― | 2.91% | 94.12% | |
41 Neutral | $14.08M | -1.74 | -186.22% | ― | -35.10% | 98.56% | |
41 Neutral | $23.17M | -0.43 | -108.35% | ― | -21.98% | 35.39% |
* Consumer Cyclical Sector Average
DBGI
Digital Brands Group
1.72
-7.63
-81.60%
TLYS
Tilly's
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101.92%
DLTH
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3.09
1.41
83.93%
RENT
Rent the Runway
5.13
0.64
14.25%
BIRD
Allbirds
2.66
-1.62
-37.85%
LVLU
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11.33
4.73
71.67%
Digital Brands Group Corporate Events
Business Operations and Strategy
Digital Brands Group Finalizes Sponsorship Agreement
Positive
Dec 9, 2025
On December 4, 2025, Digital Brands Group, Inc. finalized a Marketing and Sponsorship Agreement with Buffalo Sports Properties, LLC, which will benefit the company’s products at the University of Colorado’s athletics department. The ag...
Business Operations and StrategyProduct-Related Announcements
Digital Brands Group Signs Exclusive Manufacturing Deal
Positive
Nov 25, 2025
On November 19, 2025, Digital Brands Group, Inc. entered into an Exclusive Private Label Manufacturing Agreement with The Grove Collective, LLC, to produce knit apparel products for the University of Mississippi. The agreement, lasting three years...
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.