Digital Brands Group proudly reports an impressive 22.5% surge in net revenues during the third quarter, propelled by the outstanding performance of its recently acquired Sundry brand.
Headquartered in Texas, the company reveals that its ongoing business achieved $3.3 million in quarterly revenue, marking a substantial increase from the $2.7 million reported a year ago. Notably, ongoing business figures exclude revenue from Harper & Jones, which underwent a spin-out in the second quarter.
The net operating loss, excluding non-cash charges, witnessed significant improvement, narrowing to $1.2 million compared to the $2.5 million loss reported in the corresponding period last year.
Net loss per diluted share attributable to common stockholders amounted to $5.4 million, or $14.55 per diluted share. This is in contrast to the $4.9 million loss, or $223.83 per diluted share, reported a year ago.
Hil Davis, CEO of Digital Brands Group, expressed satisfaction with the successful turnaround of the Sundry brand. Davis stated, «We are pleased to have turned Sundry around. Based on current trends and first-quarter wholesale bookings, we are past the brand’s bottom set in August. For example, we have tripled Sundry’s first-quarter 2024 wholesale bookings versus the brand’s third-quarter 2023 wholesale revenue.»
Highlighting the positive impact on revenue and cost synergies, resulting in meaningful operating leverage and internal free cash flow starting in October, Davis anticipates the continuity of this positive trend moving forward.
Addressing the ongoing dislocation between Digital Brand Group’s public market value and the intrinsic value of its underlying assets, the board of directors recently initiated a formal review to explore strategic alternatives for the company. While no specific deadline or timetable has been set, the board remains committed to ensuring a thorough and comprehensive evaluation of potential outcomes from this strategic review.