- Digital Brands Group sinks 14% on guidance update
- CEO makes a reassuring statement in regards to upcoming quarters
Digital Brands Group, the curated collection of high-end lifestyle brands; didn’t receive a positive response from investors after announcing updates for Q4 and altering overall FY21 guidance. In alignment with other company updates, it seems that sellers took the chance of supply chain problems to pressure selling to around $2.25 – a 14% drop in early Friday trading.
Although Q4 revenue is estimated to match the company’s previous forecast of $4M; it was also made clear that quarterly revenue was indeed impacted by supply chain delays. Overall, FY21 revenue is expected to increase by around 44% – from $5.2M last year to $7.6M.
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The company has also reaffirmed its FY22 guidance of between $37.5M and $42.5M – representing a 350% growth over its 2021 updated fiscal net revenue. Digital Brands Group also expects positive EBITDA in 2022, banking on the further leveraging of its shared services platform.
Hil Davis, Chief Executive Officer of Digital Brands Group, stated “our fourth-quarter revenue performance continues the sequential quarter-over-quarter growth we experienced through the first three quarters of 2021, driven by both wholesale and e-commerce. This momentum has meaningfully increased as reflected in our very strong first quarter wholesale bookings and in our e-commerce new customer growth across all our brands.”
DBGI stock is currently trading with a daily loss of 14.1%, with price consolidating around the $2.25 level.