Digital Brands Group ventures into retail

Digital Brands Group (DBG) is set to venture into retail with the opening of its first retail store in March.

The Texas-based company officially announced the signing of a letter of intent for this move on Tuesday, projecting the store to generate an annual revenue exceeding $1.5 million and an annual cash flow surpassing $500,000.

The store's forecasted financial success is based on historical metrics and the performance of the chosen location, along with the advantage of excess Sundry inventory acquired prior to DBG's ownership.

Leveraging this excess inventory will enable DBG to achieve higher profit margins compared to off-price channel sales. Importantly, as the excess units have already been paid for and are readily available in the company's warehouse, no additional costs will be incurred in bringing them to market.

The move to establish a physical retail presence aligns with DBG's broader vision to create a well-rounded and resilient brand.

"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,” said Hil Davis, chief executive officer of Digital Brands Group.

“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.”

Earlier this month, DBG announced anticipated revenues for 2024 ranging from $27 million to $30 million, up 70% to 90% compared to 2023. The first quarter 2024 revenues are projected to reach approximately $6 million.

DBG describes itself as a "curated collection of luxury lifestyle, digital-first brands.” Last year, it completed the acquisition of Sundry. It also operates contemporary womenswear brand Bailey 44, as well as denim brand Dstld, among others.

Digital Brands Group ventures into retail

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