Digital Brands Group, Inc. (DBGI), a company retailing apparel, has seen a decline of 4.26% in the premarket trading session. As a result, DBGI stock is changing hands at $3.37 at the time of writing. The decline has come after the stock gained a 19.32% increase in Tuesday’s regular trading hours. The increase came due to the announcement of 2022 revenue guidance by the company on Tuesday.
DBGI announced 2022 revenue guidance
According to the details, the DBGI announced its initial 2022 revenue guidance of $37.5 million to $42.5 million. That means an increase of 350% from the 2021 revenue expectation. Also, the company said that it hopes for a positive EBITDA for fiscal 2022. The forecast for positive EBITDA comes from the company’s leverage of its shared service platform. Hil Davis, Chief Executive Officer of Digital Brands Group commented on the development that the forecast reflects the power of the company’s brand. He further said that the forecasted increase does not reflect any potential acquisition.
Q2 2021 financial results
On 12th August, DBGI reported the quarterly results for the second quarter of the fiscal year 2021, which ended 30th June. According to the details, the net revenue posted by the company stood at $1.003 million, as compared to net revenue of $0.664 million for the equivalent period of 2020. The cost of net revenues for the period stood at $0.608 million, while for an equivalent period of 2020, the cost of revenue stood at $0.932 million. The gross profit posted by the company for the period stood at $0.394 million. For an equivalent period of 2020, the gross loss stood at $0.268 million. The total operating expenses for the period stood at $11.23 million, while for an equivalent period of 2020, the total operating expenses stood at $1.62 million. The company bore a loss of $10.84 million from the operations, while the loss from operations for an equivalent period of 2020 stood at $1.89 million. The net loss suffered by the company stood at $10.69 million for the three month period, while for an equivalent period of 2020, the net loss which the company suffered from stood at $2.26 million. The net loss per basic and diluted share for the period stood at $1.97, while for an equivalent period of 2020, the net loss per basic and diluted share stood at $3.41. The company had cash and cash assets of $4.07 million on 30th June. The total assets in possession of the company stood at $34.01 million, while total liabilities stood at $29.14 million.
What’s ahead for DBGI?
In the recent past, DBGI stock has risen tremendously. The stock has increased by 45% during the previous week. The 52 weeks high of the stock is $8.80 while 52 week low stands at $2.32. Analysts are urging investors to keep a close watch on DBGI, based on its mercurial movement.
