American firm Digital Brands Group's revenue surges 6.8%

Administrative and general expenses, including non-cash items, were reduced by 12.7 per cent to $14.3 million, down from $16.4 million in the prior year. Additionally, sales and marketing expenses were notably lower by 18.5 per cent, totalling $4 million, reducing the expenses ratio from 35.4 per cent to 27.1 per cent, Digital Brands Group said in a press release.

The company reported a net loss per share attributable to common stockholders of $10.2 million, or $20.46 per share, which is a significant reduction from the previous year's loss of $38 million, or $1,233.10 per share.

In the fourth quarter of fiscal 2023 (Q4 FY23), DBG saw net revenues decrease to $2.8 million from $3.4 million a year ago. The quarter also experienced a decrease in gross profit to $0.5 million and a dip in gross profit margins to 18.3 per cent from 19 per cent. Administrative and general expenses dropped by 30.6 per cent to $2.2 million, and sales and marketing expenses saw a reduction of 13.4 per cent to $0.8 million.

The net loss per diluted share for common stockholders in the fourth quarter was $3.7 million, or $8.76 per share, compared to last year's fourth-quarter loss of $15.8 million, or $511.54 per share.

"The fourth quarter was the end of Sundry's bottom, which our first quarter results will reflect. Despite lower revenue contribution from Sundry in the fourth quarter, we almost achieved break even net income due to our cost savings. Based on first quarter wholesale shipments and second quarter wholesale bookings, we are excited to see revenue growth meaningfully re-accelerate. This increase in the revenue trend will be coupled with a significantly lower operating expense structure," said Hil Davis, CEO of Digital Brands Group.

Fibre2Fashion News Desk (DP)