For the third quarter ended September 30, 2024, Digital Brands Group (DBG) reported a net revenue of 2.4 million dollars, down from 3.3 million dollars in the year prior. The company cited the dropping of its largest wholesale account as the core driver of this decline, a move that was due to single-digit gross margins and additional expenses.
Despite this, DBG managed to narrow its losses, reporting 3.5 million dollars in net loss compared to last year’s 5.4 million dollars. Net loss per diluted share also narrowed from 14.55 dollars a year ago to 1.63 dollars.
Its gross profit margins came to 46 percent, down from 52.3 percent, with fixed costs of warehouse rent and labour expenses cited as the cause of the decline. Gross profit was 1.1 million dollars.
In a release, Hil David, CEO of DBG, said this Q3 was the last in which the company was to focus on “paying down debt and liabilities given the soft macro economy and the overhang of the election”. From October, the company has since transitioned from “cleaning up the balance sheet to focusing on increasing top line growth”.
Part of this effort will come in the form of a new partnership with Vaynercommerce, through which DBG is aiming to drive digital revenue and bolster its multi-step growth strategy. David added: “New initiatives include investing in other digital channels and platforms, content creation, influencer partnerships, and monthly limited-edition capsules of online only products with special pricing, fabrics and designs. ”