Store forecasted to generate over $1.5
million in annual revenue and $500,000 in annual cash flow
AUSTIN,
Texas, Feb. 27, 2024 /PRNewswire/ -- Digital
Brands Group, Inc. ("DBG") (NASDAQ: DBGI), a
curated collection of luxury lifestyle, digital-first brands, today
announces plans to open its first retail store in the first half of
April at the Simon Premium Outlet Mall in Allen, Texas, a suburb of Dallas, TX. The Company forecasts the store to
generate over $1.5 million in annual
revenue and over $500,000 in annual
cash flow based on the historical performance of this location, and
excess Sundry inventory prior to the acquisition.
DBG will use this store to clear excess inventory at
meaningfully higher margins than selling into the off-price
channel. Importantly, DBG received a significant amount of excess
inventory with its Sundry acquisition. Therefore, there will be
little to no additional costs associated with the excess inventory,
as this inventory has already been paid for and is sitting in our
warehouse. Given this, we expect this store to generate significant
annual cash flow of over $500,000 a
year.
"We are excited to begin the retail store phase of our growth
strategy. We believe the best performing retail brands will have
three legs to their growth story: (1) wholesale, (2) e-commerce and
(3) retail stores," 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
Related Links
https://ir.digitalbrandsgroup.co
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SOURCE Digital Brands Group, Inc.