Digital Brands Group: a $35mm company backed by its customers

Digital Brands Group (DBG) is a curated collection of luxury lifestyle, digital-first brands. We’re bringing together like-minded DtC names under one portfolio so you and all our investors can continue to benefit from what we do best: bringing the highest quality product at the best value directly to our customers.

We believe that a portfolio approach versus a single brand maximises shareholder value in a few ways:

  1. Increases revenue and cash flow, while also reduces risk from the ebb and flow of retail trends.

  2. Shares operating expenses across multiple brands, which increases free cash flow that can be reinvested into revenue-generating marketing programs and EBITDA.

  3. Increases our short and long term revenue growth rate, earnings to shareholders, and potential market cap as a publicly traded company.

Our traction to date

To date, DBG has reached $16.4 million in revenue from 77,000 customers, and we continue to grow at a rapid pace. Here’s a snapshot of company milestones:

  • Cash flow positive on first time customer acquisition
  • Avg. customer purchase has increased from $95.38 to $135.70, an increase of 42.27%
  • Hired a search firm for a CFO and CMO in advance of our potential IPO in 1H of 2019
  • In November 2018, completed an eight month overhaul of supply chain, moving production from China to Europe
  • Revenue run rate has increased since product from new factories has landed
  • We sold out of our Women’s Wool Maxi Coat twice due to a People.com feature showcasing celebrities wearing this coat
  • Our products are worn by celebs such as Bella Hadid, Jennifer Lopez, Kendall Jenner, Ben Affleck, and Ellen Degeneres
  • Featured in GQ, VOGUE, Esquire, Business Insider, MSNBC, ELLE, Forbes, Entrepreneur, TechCrunch, and others

Why Digital Brands Group?

There are two major benefits to DBG portfolio model. First, it cuts redundant expenses across our brands, which will drive down fixed costs, generate meaningfully more cash flow, and give our brands and their creative leaders the freedom to focus on product quality, design, and innovation as well as great creative campaigns.

Second, it enables us to redeploy some of those cost savings back into revenue generating marketing programs. This should accelerate our revenue growth and allow us to achieve profitability significantly sooner.

What brands are part of Digital Brands Group?

Already under the Digital Brands Groups umbrella is DSTLD. And in December, we’ll be announcing the launch of ACE Studios, a men’s luxury performance suiting and tailored clothing brand.

Additionally, we’ve been in discussions with more than a handful of direct-to-consumer brands interested in joining Digital Brands Group and our mission. These brands have proven their concept but do not have the capital, management team, or platform to scale their business to the next level, and they realise we can help them achieve their goal of $100 million plus in annual revenue.

What does this mean for an investment?

We’re diversifying your portfolio, as well as our own. Instead of investing in just one brand, you will be investing in all brands under the DBG umbrella, Having multiple brands within our portfolio protects us from changing trends in the retail industry.

We’ve been meticulously planning this transition for some time and believe this first-of-its-kind digital first portfolio model creates the greatest shareholder and customer value.

It positions us very uniquely as the first mover in the space, which allows us to acquire strong brands that are highly valued by consumers, and investors alike.

Additionally, with two conceivable routes toward an IPO in the near future*, we will be able to offer potential acquisition targets an exit strategy that involves liquidity, which is very rare. This provides us with a lot of leverage when negotiating these acquisitions.

Fun Fact!

Over this year’s Black Friday - Cyber Monday, Digital Brands Group experienced its most successful revenue in its history for the holiday. Its revenue increased 107% year over year during the five day period (Thanksgiving day - Cyber Monday). There were even days where revenue growth reached 150%+ year over year.

Continuing its record breaking achievements, DBG saw increased repeat and new customer AOV during the same time period, at $156 and $152 respectively. The higher AOVs were a result of an increase in the number of items in the cart as compared to years prior.

You can find out more about Digital Brands Group and invest by visiting the pitch page.

Investments of this nature carry risks to your capital. Please Invest Aware.

Hil Davis

Guest author: Hil Davis CEO at Digital Brands Group

Hil Davis came to DBG in March 2018 with a background in e-commerce and luxury apparel. In 2007, he founded men’s apparel brand J. Hilburn and built it into a $55M brand in 6 years. Hil previously held positions as an equity research analyst covering publicly traded consumer/luxury stocks at Thomas Weisel Partners, SunTrust, and Citadel Investment Group and was Head of Investor Relations at Brinker International, a $2.9B market cap company (Chili’s).