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Digital Brands Group
(NASDAQ:DBGI)
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Rating:42Neutral
Price Target:
$0.81
▼(-89.76% Downside)
Action:Reiterated
Date:10/29/26
DBGI scores low primarily due to extremely weak financial performance (shrinking revenue, severe losses, and persistent cash burn) and poor technical trend (well below major moving averages with negative momentum). Positive corporate developments around contract-driven cash flow visibility and a go-private review provide some support, but do not outweigh the current operating and balance-sheet risks.
Positive Factors
Contracted Cash Flow
The binding U.S. Program contract provides a more visible revenue and cash-flow base than discretionary apparel demand alone. Guaranteed cash flow from the initial markets may support liquidity, operating scale and execution over the next several quarters, if delivery proceeds as planned.
Negative Factors
Shrinking Revenue and Severe Losses
Declining revenue combined with negative gross margin and very large net losses shows that the current sales base is not covering the company’s cost structure. Persistent operating deterioration could limit reinvestment, weaken brand development and make a durable recovery dependent on major execution improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Contracted Cash Flow
The binding U.S. Program contract provides a more visible revenue and cash-flow base than discretionary apparel demand alone. Guaranteed cash flow from the initial markets may support liquidity, operating scale and execution over the next several quarters, if delivery proceeds as planned.
Read all positive factors
Digital Brands Group (DBGI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$784.15K
Dividend YieldN/A
Average Volume (3M)328.96K
Price to Earnings (P/E)―
Beta (1Y)1.45
Revenue Growth-33.59%
EPS Growth94.24%
CountryUS
Employees33
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)-157.99
Shares Outstanding933,509
10 Day Avg. Volume269,610
30 Day Avg. Volume328,962
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 Cap51.20
Enterprise Value/Revenue6.94
Enterprise Value/Gross Profit-88.60
Enterprise Value/Ebitda-0.98
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...
Digital Brands Group Earnings Call Summary
Earnings Call Date:Nov 14, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Nov 18, 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
8
Very Negative
Balance Sheet
22
Negative
Cash Flow
10
Very Negative
| Breakdown | TTM | Dec 2025 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.78M | 7.38M | 11.56M | 14.92M | 10.33M | 7.58M |
| Gross Profit | -453.14K | 1.05M | 3.64M | 6.54M | 3.54M | 1.87M |
| EBITDA | -40.98M | -25.65M | -7.78M | 449.72K | -15.93M | -28.57M |
| Net Income | -44.42M | -28.25M | -13.11M | -10.25M | -38.04M | -32.36M |
Balance Sheet | ||||||
| Total Assets | 46.67M | 44.49M | 19.89M | 25.34M | 33.74M | 36.49M |
| Cash, Cash Equivalents and Short-Term Investments | 1.39M | 1.93M | 164.43K | 20.77K | 1.28M | 528.39K |
| Total Debt | 21.62M | 6.12M | 6.55M | 8.67M | 13.80M | 18.62M |
| Total Liabilities | 46.13M | 35.72M | 21.22M | 23.73M | 41.19M | 43.58M |
| Stockholders Equity | 540.03K | 8.77M | -1.33M | 1.60M | -7.45M | -7.09M |
Cash Flow | ||||||
| Free Cash Flow | -20.18M | -15.88M | -6.15M | -6.04M | -10.58M | -14.26M |
| Operating Cash Flow | -20.10M | -15.88M | -6.15M | -6.01M | -10.57M | -14.22M |
| Investing Cash Flow | -223.64K | 0.00 | 0.00 | 88.82K | -7.31M | -6.01M |
| Financing Cash Flow | 21.16M | 23.39M | 6.30M | 4.66M | 18.64M | 20.18M |
Digital Brands Group Technical Analysis
Negative
7.87
Price Trends
4.65
Negative
14.70
Negative
78.63
Negative
Market Momentum
-1.31
Positive
22.62
Positive
3.09
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 7.87 is above the 20-day moving average (MA) of 2.99, above the 50-day MA of 4.65, and below the 200-day MA of 78.63, indicating a bearish trend. The MACD of -1.31 indicates Positive momentum. The RSI at 22.62 is Positive, neither overbought nor oversold. The STOCH value of 3.09 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% | |
59 Neutral | $160.76M | 26.44 | 3.54% | ― | -8.63% | ― | |
56 Neutral | $133.36M | 61.41 | 2.37% | 12.82% | 6.07% | ― | |
52 Neutral | $90.85M | 0.21 | -91.16% | ― | 21.17% | ― | |
48 Neutral | $31.01M | -3.67 | -903.25% | ― | -10.40% | 83.52% | |
46 Neutral | $25.27M | -0.24 | -243.20% | 14.73% | -38.03% | 18.52% | |
42 Neutral | $784.15K | >-0.01 | -615.34% | ― | -33.59% | 94.24% |
* Consumer Cyclical Sector Average
DBGI
Digital Brands Group
0.73
-311.27
-99.77%
TLYS
Tilly's
4.34
2.82
185.53%
DLTH
Duluth Holdings
4.40
1.59
56.58%
RENT
Rent the Runway
2.64
-1.31
-33.16%
BIRD
Smartbird Inc
2.12
-5.22
-71.11%
LVLU
Lulu's Fashion Lounge Holdings
10.48
5.58
113.88%
Digital Brands Group Corporate Events
Business Operations and StrategyFinancial Disclosures
Digital Brands Group Maintains Public Status After Strategic Review
Positive
Oct 29, 2026
On October 26, 2026, Digital Brands Group said it will remain a public company for now after a strategic review, citing compounding growth drivers including the strong August digital relaunch of its AVO brand, faster execution under a two‑ye...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Digital Brands Group Updates U.S. Program, Explores Go-Private
Positive
Sep 11, 2026
On September 10, 2026, Digital Brands Group issued an investor update detailing its previously announced two‑year, $165 million U.S. Program contract to supply apparel, footwear and toiletries to 771,481 U.S. residents re‑entering the ...
Business Operations and StrategyFinancial Disclosures
Digital Brands Group Secures $3.3 Million Guaranteed Cash Flow
Positive
Sep 2, 2026
On September 1, 2026, Digital Brands Group announced it had executed a binding contract securing $3.3 million in guaranteed cash flow for its U.S. Program from September 1 through December 31, 2026. The guaranteed cash is generated solely from the...
Business Operations and StrategyFinancial Disclosures
Digital Brands Group Signals Imminent Financial Turnaround
Positive
Aug 13, 2026
On August 12, 2026, Digital Brands Group announced it had achieved a major financial turnaround, highlighting that its collegiate program is the principal driver of this improvement. The company said it expects to begin generating positive cash fl...
Business Operations and StrategyM&A Transactions
Digital Brands Group Receives Premium Take-Private Acquisition Offer
Positive
Aug 6, 2026
On August 3, 2026, Digital Brands Group announced it had retained Roth Capital Partners to formally explore take-private options aimed at maximizing shareholder value. The move signaled the company’s willingness to consider strategic shifts ...
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.