Digital Brands Group, Inc. (NASDAQ: DBGI) has announced a new marketing partnership with VAYNERCOMMERCE. The partnership began on October 21, 2024 and has already shown positive results for DBG.
In the 17 days from October 22 to November 7, DBG saw a 34% increase in daily digital revenues compared to the prior 30-day period. Average order volume also increased by 7% during this time. Hil Davis, CEO of DBG, said, “We believe these results reinforce the positive value of our partnership with VAYNERCOMMERCE.
We made the decision to outsource digital marketing services to VAYNERCOMMERCE based on their reputation in the industry.”
DBG plans to expand the partnership by incorporating VAYNERCOMMERCE’s email and SMS campaign services going forward. The company offers apparel through direct-to-consumer and wholesale channels. Digital Brands Group has faced some challenges recently.
The company had to correct an erroneous stock issuance and return 1,311,345 shares that were mistakenly issued to a note holder. This brought DBG’s total outstanding common stock to 28,982,218 shares. The company also reported a decline in net revenue to $3.4 million.
Despite this, DBG has been working to reduce its debt and liabilities.
Revenue surge through new partnership
Over $5 million was paid off in the first half of the year.
DBG launched a new direct-to-consumer women’s apparel brand called AVO. The brand aims to offer premium apparel at competitive prices. The company is focusing on reducing liabilities and positioning itself for future growth.
Plans include ramping up growth marketing spending and adding brands to a major department store. DBG is also launching a new licensed brand and introducing new direct-to-consumer brands. While the partnership with VAYNERCOMMERCE shows promising early results, DBG still faces financial challenges.
The company’s market capitalization stands at $1.37 million. Revenue for the last twelve months as of Q2 2024 was $13.02 million, with a revenue growth of -25.87% over the same period. DBG maintains a gross profit margin of 42.2% on its products.
However, the company’s stock has performed poorly over the last month, with a one-month price total return of -26.51%. The company is not currently profitable. Investors interested in a more comprehensive analysis of Digital Brands Group can find additional insights from recent financial reports and market performance data.
