Digital Brands Group, Inc. (NasdaqGS: DBGI) is on a mission to change the rules for how high-fashion is sourced, created, and sold. And with its recent $10 million IPO complete, those changes can come sooner rather than later.
A video published earlier this week shows that Digital Brands is well-positioned to create enormous shareholder value in the coming quarters. And with only about 6.8 million shares in the float, the stock could move appreciably on company news. Moreover, with DBGI committed to an aggressive acquisition campaign, information on that front could be imminent.
Better still, with DBGI intent on changing the way apparel buying and selling gets done, its strategy should translate to more impactful income by cutting out almost every intermediary in the design to sale process.
This video explains how:
Video Link: https://www.youtube.com/embed/5cQPP8jHNV4
A Direct And Digital Approach To Generating Business
As the video shows, Digital Brands is implementing a unique model to generate and maximize its revenues. And while DBGI isn't the pioneer of direct-to-consumer sales, its plan for developing its business is. Expediting the process, as part of its IPO, DBGI acquired Harper and Jones, LLC., a custom and made-to-measure suiting and sportswear company that provides customers with a range of full-closet customization options. While that asset may help jump-start revenues, other brands have already joined the portfolio.
Its Bailey 44 line of apparel, for instance, is already a popular brand. This stylish apparel is influenced and inspired by LA's urban architecture and iconic landscapes. More distinguishing, its designs are influenced by modern details and classic elements that combine beautiful, luxe fabrics and on-trend designs to create sophisticated ready-to-wear apparel for women on the go. A top seller is its Lily Top, a sculpted vegan leather sleeveless top with a ponte knit back and zip closure that takes comfort and design to a higher level. On its own, Bailey 44 can deliver substantial revenues.
Of course, it's only one brand in a company that has several. And with plans to add dozens more in the coming quarters, investors may be wise to consider positioning at current levels. In fact, while similar in some ways to popular online sellers Naked Brands, Inc. (NASDAQ: NAKD) and L Brands, Inc. (NYSE: LB), Digital Brands is indeed targeting the online base.
Where it differs, though, is that through its digitally native vertical operation, DBGI controls its own distribution, sources its products directly from its third-party manufacturers, and sells directly to the end consumer. Thus, the model lends itself to high margin, low overhead sales
And it's that reason why DBGI will be more than competitive...they can be profitable in an already tight-margin industry.
Growth In 2021
Better still, with $10 million in the bank following its IPO, DBGI is well-positioned to create shareholder value by focusing on a single goal- make DBGI into a much larger company. And with money in the bank and impressive lines of apparel to sell, DBGI is planning to take advantage of a consumer products and apparel market expected to surge in the back half of the year as COVID restrictions finally ease.
In fact, analysts expect a V-shaped recovery for the industry as pent-up demand, combined with stimulus money, acts as fuel for what is expected to be one of the sharpest and most profitable snap-back rallies ever.
And if that's the case, Digital Brands Group can undoubtedly make a statement: offering high-quality, socially conscious fashions can do more than generate substantial revenues; it can help create an apparel brand juggernaut.
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