US’ Digital Brands Group, a curated collection of luxury lifestyle, digital-first brands, has reported a 69.6 per cent increase in net revenues, reaching $4.5 million in the second quarter of fiscal 2023 (Q2 FY23), compared to $2.6 million a year ago.

The gross margin experienced a 40.4 per cent increase, rising to $2.2 million from $1.5 million a year ago, while gross profit margins expanded to 52.0 per cent from 42 per cent. General and administrative expenses, including non-cash items, witnessed a 4 per cent decrease to $4.1 million, down from $4.2 million last year. Concurrently, general and administrative expenses as a percentage of revenue declined sharply to 90.7 per cent from 160.1 per cent a year ago, the company said in a press release.

Income from operations made a reversal in Q2 FY23, showing $9 million in income as opposed to a loss of $10.6 million a year ago.

"We are pleased to see the significant revenue growth and operating leverage since the acquisition of Sundry. In fact, based on wholesale bookings and current e-commerce trends, our third quarter and fourth quarter revenues will be meaningfully higher than this quarter.  Additionally, we will continue to show a higher level of cost savings in our third and fourth quarters versus this quarter, " said Hil Davis, CEO of Digital Brands Group.

Fibre2Fashion News Desk (DP)

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