Digital Brands Group Releases Q2 2024 Financial Overview
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Digital Brands Group Reports Second Quarter 2024 Financial Results
Digital Brands Group, Inc. (“DBG”) (NASDAQ: DBGI), a curated collection of luxury lifestyle, digital-first brands, announced its financial results for the second quarter ending June 30, 2024.
CEO Hil Davis remarked, “The company paid off over $5 million in debt and lowered its G&A expenses by $4.5 million. This improvement on the balance sheet is appealing to our strategic partners, especially as we have significantly reduced our operating costs.”
Davis elaborated that they anticipate a rebound in consumer spending and that DBG is now better positioned to capitalize on growth opportunities. The return of digital advertising has resulted in an impressive 2.6x to 2.9x return on advertising spend (ROAS).
Quarterly Financial Highlights
Key Financial Metrics
For the second quarter of 2024, the results are as follows:
- Net revenues were $3.4 million, down from $4.5 million in the previous year.
- Gross profit margins decreased to 45.9% compared to 52.0% a year ago.
- Sales and Marketing expenses were reduced to $615,000 from $1.1 million in the same quarter the previous year.
- The company experienced a net loss of $3.5 million, an improvement from a net loss of $5.7 million reported for the same period last year.
- Net loss per diluted share was $2.08, compared with a net income per diluted share of $0.31 from the previous year, which included a $10.7 million one-time benefit.
Management will host a conference call to discuss these results in detail. Interested parties can join the call at the provided access number.
Understanding Market Conditions
The current market remains challenging, but DBG's strategic initiatives are geared towards navigating this landscape successfully. Investments in digital marketing, combined with streamlining operations, have put the company in a stronger position to respond to market fluctuations.
Company Overview
Digital Brands Group, Inc. focuses on a diverse array of apparel through both direct-to-consumer and wholesale platforms. The business model emphasizes a digitally native-first vertical approach, ensuring they cater effectively to consumer needs by utilizing data analytics to personalize offerings.
Contact Information
For further inquiries, please contact:
Hil Davis, CEO
Email: invest@digitalbrandsgroup.co
Phone: (800) 593-1047
Frequently Asked Questions
1. What were Digital Brands Group's total revenues for Q2 2024?
Digital Brands Group reported net revenues of $3.4 million for the second quarter of 2024.
2. How did the company's expenses change in the recent quarter?
General and administrative (G&A) expenses decreased by $4.5 million, while sales and marketing expenses also saw a reduction from $1.1 million to $615,000.
3. What was the net loss for Digital Brands Group in Q2 2024?
The company reported a net loss of $3.5 million, which is an improvement compared to a net loss of $5.7 million in the same quarter last year.
4. How has Digital Brands Group's approach to advertising changed recently?
The company has recently resumed digital advertising efforts, achieving a return on advertising spend (ROAS) of 2.6x to 2.9x.
5. Where can I find more information on Digital Brands Group?
Additional information can be accessed through Digital Brands Group's investor relations and company website.
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