Mon, May 20, 9:23 PM (154 days ago)
For the quarter ended March 31, 2024, Digital Brands Group, Inc. (DBG) reported a net loss of $683,735, a significant improvement from the $6,136,349 loss in the same period in 2023. Revenue decreased to $3,576,587 from $4,439,508, primarily due to delayed wholesale shipments. The gross margin improved to 48.1% from 45.5%, attributed to leveraging fixed costs across brands. Operating expenses dropped significantly to $1,945,381 from $5,707,802, driven by cost-cutting measures and synergies from acquisitions. The company faces liquidity challenges with a working capital deficit of $15 million and substantial debt of $9.1 million. Management is pursuing additional financing to sustain operations.