DBG Announces First 45 Day Results with VAYNERCOMMERCE resulting in a 224% increase in digital revenue

Rhea-AI Summary

Digital Brands Group (NASDAQ: DBGI) reported significant results from its marketing partnership with VAYNERCOMMERCE, showing a 224% increase in daily digital revenues during the first 45 days of collaboration (October 22nd to December 5th, 2024) compared to the previous 45-day period. The partnership, which began on October 21st, 2024, aims to enhance DBG's online presence and revenue growth through VAYNERCOMMERCE's digital marketing services. VAYNERCOMMERCE, created by Gary Vaynerchuk (GARYVEE), is a full-service digital growth agency focused on helping digital companies scale their operations.

Positive

• 224% increase in daily digital revenues over 45-day period
• Strategic partnership with established digital marketing agency VAYNERCOMMERCE

Negative

• None.

Insights

Digital Marketing Analyst

A 224% increase in daily digital revenue over 45 days marks a significant turnaround for DBGI's digital marketing efforts. VAYNERCOMMERCE's involvement brings sophisticated performance marketing capabilities and Gary Vaynerchuk's proven track record in digital growth. The partnership addresses a critical need for DBGI's e-commerce optimization and could substantially impact their direct-to-consumer sales channel.

However, investors should note that the comparison period is relatively short at 45 days and seasonal factors during the holiday shopping period may have contributed to the growth. The true test will be sustaining this momentum beyond the initial implementation phase and converting it into meaningful bottom-line improvements for DBGI, particularly given their micro-cap status and need for sustainable growth metrics.

Financial Analyst

For a company with a market cap under $3 million, this revenue growth could be transformative if sustained. The partnership with VAYNERCOMMERCE represents a strategic pivot towards performance-driven marketing, which could improve customer acquisition costs and marketing ROI. However, the micro-cap nature of DBGI and its trading history warrant careful consideration.

The key metrics to monitor going forward will be whether this revenue growth translates into improved margins and positive cash flow, as marketing expenses associated with VAYNERCOMMERCE's services will need to be factored against the revenue gains. The holiday season timing may have amplified results, making year-over-year comparisons more relevant for assessing true performance improvements.

Austin, TX, Dec. 12, 2024 (GLOBE NEWSWIRE) -- Digital Brands Group, Inc. (“DBG”) (NASDAQ: DBGI), a curated collection of luxury lifestyle brands, today announces the first 45 day results since it entered into a marketing partnership on October 21, 2024, with VAYNERCOMMERCE, https://vaynercommerce.com/. VAYNERCOMMERCE is a full service digital growth agency created by Gary Vaynerchuk, also known as GARYVEE. VAYNERCOMMERCE’s services aim to help digital companies scale their online presence and revenues.

This partnership has already led to a 224% increase in daily digital revenues during the 45 day period (October 22^nd, 2024 to December 5th, 2024) after VAYNERCOMMERCE began providing DBG with digital marketing services versus the prior 45 day period from September 6th^nd to October 21^st.

“We made the decision to outsource digital marketing services to VAYNERCOMMERCE based on their reputation in the industry. We felt that we could benefit from an outside performance driven marketing solution team that can focus its efforts on improving our marketing campaigns. We have just begun this journey with them and are already experiencing an increase in our results,” said Hil Davis, Chief Executive Officer of Digital Brands Group.

Forward-looking Statements

Certain statements included in this release are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting DBG and therefore involve several risks and uncertainties. You can identify these statements by the fact that they use words such as “will,” “anticipate,” “estimate,” “expect,” “should,” and “may” and other words and terms of similar meaning or use of future dates, however, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements regarding DBG’s plans, objectives, projections and expectations relating to DBG’s operations or financial performance, and assumptions related thereto are forward-looking statements. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. DBG undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Potential risks and uncertainties that could cause the actual results of operations or financial condition of DBG to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: risks arising from the widespread outbreak of an illness or any other communicable disease, or any other public health crisis, including the coronavirus (COVID-19) global pandemic; the level of consumer demand for apparel and accessories; disruption to DBGs distribution system; the financial strength of DBG’s customers; fluctuations in the price, availability and quality of raw materials and contracted products; disruption and volatility in the global capital and credit markets; DBG’s response to changing fashion trends, evolving consumer preferences and changing patterns of consumer behavior; intense competition from online retailers; manufacturing and product innovation; increasing pressure on margins; DBG’s ability to implement its business strategy; DBG’s ability to grow its wholesale and direct-to-consumer businesses; retail industry changes and challenges; DBG’s and its vendors’ ability to maintain the strength and security of information technology systems; the risk that DBG’s facilities and systems and those of our third-party service providers may be vulnerable to and unable to anticipate or detect data security breaches and data or financial loss; DBG’s ability to properly collect, use, manage and secure consumer and employee data; stability of DBG’s manufacturing facilities and foreign suppliers; continued use by DBG’s suppliers of ethical business practices; DBG’s ability to accurately forecast demand for products; continuity of members of DBG’s management; DBG’s ability to protect trademarks and other intellectual property rights; possible goodwill and other asset impairment; DBG’s ability to execute and integrate acquisitions; changes in tax laws and liabilities; legal, regulatory, political and economic risks; adverse or unexpected weather conditions; DBG's indebtedness and its ability to obtain financing on favorable terms, if needed, could prevent DBG from fulfilling its financial obligations; and climate change and increased focus on sustainability issues. More information on potential factors that could affect DBG’s financial results is included from time to time in DBG’s public reports filed with the SEC, including DBG’s Annual Report on Form 10-K, and Quarterly Reports on Form 10-Q, and Forms 8-K filed or furnished with the SEC.

About Digital Brands Group

We offer a wide variety of apparel through numerous brands on a both direct-to-consumer and wholesale basis. We have created a business model derived from our founding as a digitally native-first vertical brand. We focus on owning the customer's "closet share" by leveraging their data and purchase history to create personalized targeted content and looks for that specific customer cohort.

Digital Brands Group, Inc. Company Contact

Hil Davis, CEO
Email: invest@digitalbrandsgroup.co
Phone: (800) 593-1047
SOURCE Digital Brands Group, Inc.
Related Links
https://ir.digitalbrandsgroup.co

FAQ

What was DBGI's revenue increase after partnering with VAYNERCOMMERCE?

DBGI reported a 224% increase in daily digital revenues during the first 45 days after partnering with VAYNERCOMMERCE (October 22nd to December 5th, 2024) compared to the previous 45-day period.

When did DBGI start its partnership with VAYNERCOMMERCE?

DBGI entered into a marketing partnership with VAYNERCOMMERCE on October 21st, 2024.

How long was the initial performance period measured for DBGI's VAYNERCOMMERCE partnership?

The initial performance period was measured over 45 days, from October 22nd, 2024 to December 5th, 2024.

What services does VAYNERCOMMERCE provide to DBGI?

VAYNERCOMMERCE provides digital marketing services to DBGI, focusing on helping scale their online presence and revenues as a full-service digital growth agency.