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Digital Brands Group
(NASDAQ:DBGI)
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Rating:43Neutral
Price Target:
$13.50
â–²(4.65% Upside)
Action:Upgraded
Date:07/29/26
The score is primarily held down by very weak financial performance (collapsed margins, very large losses, and materially negative operating/free cash flow) and a bearish technical setup with the stock well below major moving averages. Corporate events provide some offset via growth-related announcements, reduced dilution overhang, and insider buying, but legal/regulatory overhang and limited valuation support keep the overall risk profile elevated.
Positive Factors
Secured U.S. program expansion
A contractual secured program that just grew ~32% and adds roughly $40M of incremental revenue materially enlarges the company’s recurring revenue base. This strengthens scale and predictability in wholesale/DTC fulfillment flow, supporting longer-term revenue stability beyond one-off promotions.
Negative Factors
Deep negative operating and free cash flow
Sustained, large negative operating and free cash flow show the business is not self-funding. That persistent cash burn forces ongoing reliance on external financing or asset monetization, constraining reinvestment, increasing liquidity risk, and raising the odds of dilutive capital raises over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Secured U.S. program expansion
A contractual secured program that just grew ~32% and adds roughly $40M of incremental revenue materially enlarges the company’s recurring revenue base. This strengthens scale and predictability in wholesale/DTC fulfillment flow, supporting longer-term revenue stability beyond one-off promotions.
Read all positive factors
Digital Brands Group (DBGI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.16M
Dividend YieldN/A
Average Volume (3M)460.55K
Price to Earnings (P/E)―
Beta (1Y)0.58
Revenue Growth-30.71%
EPS Growth97.08%
CountryUS
Employees33
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)-176.80
Shares Outstanding575,000
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
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. (DBGI) functions as an apparel enterprise, distributing its diverse array of clothing labels both directly to consumers and via wholesale channels. Its brand portfolio includes DSTLD, which features denim garments, and A...
How the Company Makes Money
DBGI makes money primarily by selling apparel and related products under its owned brand portfolio. Its core revenue stream is direct-to-consumer (DTC) sales, where it markets and sells products through brand-specific or company-operated e-commerc...
Digital Brands Group Earnings Call Summary
Earnings Call Date:Nov 14, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Aug 19, 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
9
Very Negative
Balance Sheet
34
Negative
Cash Flow
6
Very Negative
| Breakdown | TTM | Dec 2025 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.83M | 7.38M | 11.56M | 14.92M | 10.33M | 7.58M |
| Gross Profit | 81.90K | 1.05M | 3.64M | 6.54M | 3.54M | 1.87M |
| EBITDA | -35.23M | -25.65M | -7.78M | 449.72K | -16.50M | -28.57M |
| Net Income | -37.55M | -28.25M | -13.11M | -10.25M | -38.04M | -32.36M |
Balance Sheet | ||||||
| Total Assets | 47.32M | 44.49M | 19.89M | 25.34M | 33.74M | 36.49M |
| Cash, Cash Equivalents and Short-Term Investments | 5.12M | 1.93M | 164.43K | 20.77K | 1.28M | 528.39K |
| Total Debt | 10.25M | 6.12M | 6.55M | 8.67M | 13.80M | 18.62M |
| Total Liabilities | 43.74M | 35.72M | 21.22M | 23.73M | 41.19M | 43.58M |
| Stockholders Equity | 3.58M | 8.77M | -1.33M | 1.60M | -7.45M | -7.09M |
Cash Flow | ||||||
| Free Cash Flow | -16.20M | -15.88M | -6.15M | -6.04M | -10.58M | -14.26M |
| Operating Cash Flow | -16.08M | -15.88M | -6.15M | -6.01M | -10.57M | -14.22M |
| Investing Cash Flow | -260.48K | 0.00 | 0.00 | 88.82K | -7.31M | -6.01M |
| Financing Cash Flow | 19.22M | 23.39M | 6.30M | 4.66M | 18.64M | 20.18M |
Digital Brands Group Technical Analysis
Negative
12.90
Price Trends
27.51
Negative
51.36
Negative
193.23
Negative
Market Momentum
-4.34
Positive
28.16
Positive
13.83
Positive
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 12.9 is below the 20-day moving average (MA) of 23.26, below the 50-day MA of 27.51, and below the 200-day MA of 193.23, indicating a bearish trend. The MACD of -4.34 indicates Positive momentum. The RSI at 28.16 is Positive, neither overbought nor oversold. The STOCH value of 13.83 is Positive, 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% | |
61 Neutral | $154.29M | -12.62 | -6.80% | ― | -8.42% | 79.65% | |
57 Neutral | $47.93M | -10.27 | -407.26% | ― | -8.96% | 83.08% | |
49 Neutral | $113.11M | -38.48 | -3.98% | ― | 1.69% | 93.35% | |
48 Neutral | $119.23M | 0.55 | -33.43% | ― | 16.39% | ― | |
46 Neutral | $20.25M | -0.24 | -173.54% | ― | -21.84% | 17.71% | |
43 Neutral | $8.16M | -0.09 | -423.85% | ― | -30.71% | 97.08% |
* Consumer Cyclical Sector Average
DBGI
Digital Brands Group
15.45
-400.15
-96.28%
TLYS
Tilly's
3.81
2.11
124.12%
DLTH
Duluth Holdings
4.08
1.97
93.36%
RENT
Rent the Runway
3.61
-0.51
-12.29%
BIRD
Allbirds
2.22
-7.28
-76.63%
LVLU
Lulu's Fashion Lounge Holdings
16.26
12.54
337.15%
Digital Brands Group Corporate Events
Business Operations and StrategyFinancial DisclosuresStock Split
Digital Brands Group Expands Secured Program, Boosts Revenue
Positive
Jul 27, 2026
On July 27, 2026, Digital Brands Group announced that its secured U.S. program had expanded 32% to approximately $165 million, driven by the addition of new apparel and footwear categories. Following a 1-for-40 reverse stock split, the companyR...
Business Operations and StrategyPrivate Placements and Financing
Digital Brands Group Secures New Financing and Equity Line
Neutral
Jul 24, 2026
On July 23, 2026, Digital Brands Group, Inc. entered into a securities purchase agreement to issue an unsecured convertible promissory note with a principal amount of $3,529,412, tied to a $3,000,000 subscription, to fund general working capital a...
Business Operations and StrategyRegulatory Filings and ComplianceStock Split
Digital Brands Group Announces Major Reverse Stock Split
Neutral
Jul 22, 2026
On July 15, 2026, Digital Brands Group’s board approved a 1-for-40 reverse stock split of its common stock, with the move becoming effective at 12:01 a.m. Eastern Time on July 24, 2026. The company subsequently filed the required Certificate...
Business Operations and StrategyExecutive/Board Changes
Digital Brands Group Adds Independent Director to Board
Positive
Jul 20, 2026
On July 14, 2026, Digital Brands Group, Inc. appointed David Sosnowski as an independent director to its Board of Directors for an initial one-year term, subject to annual renewals and continuation until the next shareholder meeting or his earlier...
Business Operations and StrategyRegulatory Filings and Compliance
Digital Brands Group Modifies Series D Preferred Stock Terms
Neutral
Jul 18, 2026
On July 17, 2026, Digital Brands Group filed a Certificate of Amendment in Nevada to modify the terms of its Series D Convertible Preferred Stock, specifically revising the definition of the “Floor Price” used in conversion calculation...
Business Operations and StrategyFinancial Disclosures
Digital Brands Group Guides Strong Revenue and Turnaround
Positive
Jul 9, 2026
On July 7, 2026, Digital Brands Group’s AVO label entered a strategic partnership with the largest U.S. college bookstore chain, securing over 1,000 locations and taking over all prime retail floor space previously held by lululemon. The com...
Business Operations and StrategyLegal Proceedings
Digital Brands Group Targets Suspected Stock Market Manipulation
Negative
Jul 8, 2026
On July 6, 2026, Digital Brands Group announced it had retained Houston-based law firm Christian Attar, which specializes in market manipulation and naked short litigation, to investigate suspected naked short selling and other manipulation of its...
Business Operations and Strategy
Digital Brands Group Reduces Dilution by Warrant Elimination
Positive
Jun 22, 2026
Digital Brands Group, Inc. announced on June 18, 2026, that approximately 9.6 million outstanding cash warrants expired on June 17, 2026, removing a major source of potential share issuance. Earlier in the week of June 15, 2026, the company had al...
Legal ProceedingsRegulatory Filings and Compliance
Digital Brands Group Cancels Warrants Amid Shareholder Concerns
Negative
Jun 17, 2026
On June 15, 2026, Digital Brands Group canceled 7.1 million pre-funded warrants after receiving complaints from shareholders about suspected collusion, violations of 4.99% beneficial ownership caps, use of foreign silent partners as nominees, and ...
Business Operations and Strategy
Digital Brands CEO Makes Major Open-Market Stock Purchase
Positive
Jun 12, 2026
On June 11, 2026, Digital Brands Group reported that CEO John Hilburn “Hil” Davis IV bought $700,000 of the company’s common stock in open market transactions on June 10, 2026. The move underscores Davis’s personal financia...
Business Operations and Strategy
Digital Brands CEO Buys Shares, Signaling Confidence Ahead
Positive
Jun 9, 2026
On June 3, 2026, Digital Brands Group disclosed that CEO John Hilburn “Hil” Davis IV purchased shares of the company’s common stock in open-market transactions that took place on June 1, 2026, the first insider open-market share ...
Business Operations and Strategy
Digital Brands Group Expands GCC Partnership to Drive Growth
Positive
Jun 5, 2026
On June 1, 2026, Digital Brands Group announced it had received initial purchase orders tied to its $125 million U.S. Program and expanded its partnership with Global Combat Collective, marking a concrete step in scaling this previously outlined i...
Business Operations and StrategyFinancial Disclosures
Digital Brands Group Issues 2026 Revenue and Cash Flow Guidance
Positive
May 18, 2026
On May 12, 2026, Digital Brands Group announced fiscal 2026 guidance, projecting revenue between $55 million and $65 million and free cash flow of $2.5 million to $3.5 million. The company also issued guidance for the period from July 1, 2026 thro...
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.