In the current trading session, the shares of Digital Brands Group Inc. (DBGI) stock had surged by 12.90% to trade at the price of $5.95 at last check. The DBGI stock closed the session previously at $5.27. The past 90 days’ average trade volume has been 5.91 million. The DBGI stock volume traded 11.45 million shares. In the past week, DBGI stock has moved down by -8.82%. Furthermore, Digital Brands Group Inc. is currently valued in the market at $55.30million and has 10.49 million outstanding shares.
What are the latest operational maneuvers and financial updates in Digital Brands Group?
On 28th June 2021, Digital Brands Group Inc. released its first-quarter financial results for the financial year 2021 which ended on 31st March 2021.
The overall financial results and balance sheet display the hiccups and continued operation distortion due to the COVID-19’s pandemic. One of the main aims of the company was to make to conserve their market spending and make it more efficiently aligned with the reduced business operations and corporate activities. This was primarily due to COVID-19’s impact on the Bailey 44 which also limited the company’s cash-on-hand and inventory stock.
However, the company expects to see improved results in the second quarter however this improved result is relative to the first quarter and not the same financial performance as pre-pandemic times. The CEO of the DBGI stock Hil Davis stated that the operational improvement in the result will be displayed in the third and fourth quarter of 2021. The amount of cash that DBGI stock has as of now as well as the level of inventory is enough to sustain the expected amount of operational activities for the second, third and fourth quarter of 2021.
The IPO of the company in last May boosted the cash balance and now the main contributors to the increased level of performance for the rest of the year are due to three factors; The company’s DSTLD inventory shipment had arrived in late May with the bulk of the inventory expected to arrive mid of this month till mid of September. DBGI stock has shifted its ship Bailey 44 product to wholesale accounts which started in Mid-May. This boosted the wholesale demand and orders which the company states is equal to the same level as prior to the pandemic.
Lastly, the company is creating a marketing and advertising plan majorly for its latest marketing strategy. This marketing strategy is putting the company’s latest business expansion towards Amazon into the spotlight, as it decides to sell select brands through the largest third-party e-commerce platform. We previously wrote an article regarding this latest expansion and why Amazon is the right move for DBGI stock’s expansion.
Closing of the proposed underwriter’s over-allotment option
The company also announced (28th June 2021) that it has closed the remaining over-allotment option for the underwriters who had purchased an additional 361,445 shares at $4.15 per share. A total of 2,771,084 shares of DBGI’s common stock have been sold for a gross aggregate of $11.5 million. This proposed offering was closed on 18th May.
