Digital Brands Group (DBGI) Q3 2024 Earnings Report

293 Followers

Previous Report: Q2 2024

Next Report: Q4 2024

DBGI Q3 2024 EPS Results

Actual EPS-$3261.08

Consensus EPS―

Beat/Miss―

One Year Ago EPS-$29108.56

DBGI Q3 2024 Revenue Results

Actual Revenue$2.44M

Expected Revenue―

Beat/Miss―

YoY Revenue Growth-25.07%

Earnings Announcement Details

QuarterQ3 2024

Date11/14/2024

TimeAfter Close

Conference CallThursday, November 14, 2024

DBGI Upcoming Earnings

Digital Brands Group's next earnings date is estimated for November 18, 2026, based on past reporting schedules.

Q3 2024 Earnings Call Audio

DBGI Q3 2024 Earnings Call

0:00 / 0:00

Q3 2024 Earnings Slide Deck

No slide deck is available for this earnings event.

Q3 2024 Earnings Call Summary

Q3 2024

Earnings Call Date:Nov 14, 2024|

% Change Since:

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.

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.

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.

Debt Reduction Achievements

The company successfully paid down $1.3 million in convertible debt, eliminating it from the balance sheet and focusing solely on long-term, patient debt.

Increase in Earnings for 2025

An expected increase of over $4.5 million in earnings for 2025 due to the conclusion of Stateside's goodwill and amortized interest expenses.

Wholesale Price Increase

A meaningful wholesale price increase at Sundry has been implemented with zero resistance, expected to add more than $500,000 a year to gross margins.

Significant Cost Reductions

General and administrative expenses decreased by $1.3 million year-over-year, with a reduction of over $500,000 from the last quarter.

Net Loss Reduction

Net loss reduced to $3.5 million compared to $5.4 million a year ago, highlighting improved financial management.

DBGI Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change
Nov 18, 2026	2026 (Q3)	- / -	-1.178	―
Aug 19, 2026	2026 (Q2)	- / -13.59	-32.387	58.04% (+18.80)
May 25, 2026	2026 (Q1)	- / -42.57	-36.69	-16.03% (-5.88)
Nov 14, 2025	2025 (Q3)	- / -47.11	-81.527	42.21% (+34.41)
Aug 13, 2025	2025 (Q2)	- / -0.81	-104.181	99.22% (+103.37)
May 26, 2025	2024 (Q4)	- / -0.92	-23.018	96.02% (+22.10)
Nov 14, 2024	2024 (Q3)	- / -3261.08	-29108.56	88.80% (+25847.48)
Aug 19, 2024	2024 (Q2)	- / -4167.24	15739.5	-126.48% (-19906.74)
May 20, 2024	2024 (Q1)	- / -	-27.054	―
Apr 15, 2024	2023 (Q4)	- / -920.72	-54109	98.30% (+53188.28)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed