Digital Brands Group, Inc. (NASDAQ: DBGI) is up 7.48% in the Pre-market trading session at the price of $4.74 despite any recent update. However, the company is scheduled to deliver Q2 results on 12th August 2021.
Estimate of Second Quarter 2021 Revenue:
On 8th July 2021, DBGI declared its initial estimate of financial results for the quarter ended 30th June 2021. The report predicted that second-quarter 2021 revenue would be increased by roughly 100% over the first quarter of 2021.
Although, the factors which affected Q1 results are expected to badly impact Q2 results too. However, the report anticipated better-operating results in Q2 and significantly improved operating results in the third and fourth quarters of 2021.
Exercise and Closing of Remaining Over-Allotment Option:
DBGI, on 28th June 2021, disclosed the underwriters of Digital Brand’s previously announced public offering have purchased an additional 361,445 shares of common stock. The offering was initially closed on 18th May 2021. The remaining portion of their over-allotment option was priced at $4.15 per share. The company has now sold approximately $11.5 million worth of common stock and warrants to purchase 2,771,084 shares of common stock.
First Quarter 2021 Financial Results:
On 28th June 2021, DBGI released a financial report for its first quarter ended 31st March 2021.Net loss was $3.0 million or $4.55 per diluted share in the first quarter of 2021. Net loss of $1.9 million or $2.87 per diluted share was reported in the prior year same period.
CEO Hil Davis remarked that their first quarter 2021 results were primarily effected by a combination of factors. These include limited cash, limited inventory, minimal marketing spends, and the constant effect of COVID-19’s impact on Bailey 44. However, Harper & Jones contribution, Bailey 44 wholesale shipments, and some inventory levels for DSTLD will reduce the adverse effects in Q2, he added.