Digital Brands Group Inc (DBGI)

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$DBGI news

DBG forecasts the store to generate over $1.5 million in annual revenue and $500,000 in annual cash flow

AUSTIN, Texas, Jan. 16, 2024 /PRNewswire/ -- Digital Brands Group, Inc. ("DBG") (NASDAQ: DBGI), a curated collection of luxury lifestyle, digital-first brands, today announces that is has signed a Letter of Intent to open its first retail store in March. 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 metrics and performance of this store, and excess Sundry inventory prior to the acquisition.


DBG will use this store to clear excess inventory at a meaningfully higher margin than selling into the off-price channel. Importantly, DBG received a significant amount of excess inventory with its Sundry acquisition. Therefore, there will be no additional costs to make these excess units, as they have already been paid for and are at 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 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. We started with an outlet location due to the finished goods inventory that are already paid for and sitting at our warehouse, as well as the historical metrics and performance of this store," said Hil Davis, Chief Executive Officer of Digital Brands Group.