Digital Brands signs LoI to open first retail store in March

Digital Brands Group announces that is has signed a Letter of Intent, or LoI, to open its first retail store in March. The Company forecasts the store to generate over $1.5M in annual revenue and over $500,000 in annual cash flow based on the historical metrics and performance of this store, and excess Sundry inventory prior to the acquisition. DBG will use this store to clear excess inventory at a meaningfully higher margin than selling into the off-price channel. Importantly, DBG received a significant amount of excess inventory with its Sundry acquisition. Therefore, there will be no additional costs to make these excess units, as they have already been paid for and are at our warehouse. Given this, we expect this store to generate significant annual cash flow of over $500,000 a year.