Digital Brands Group, Inc. (“DBGI”) (NASDAQ: DBGI), a curated collection of luxury lifestyle, digital-first brands, today announces that it is providing a fourth quarter and fiscal year 2021 net revenue update. Additionally, the company is reaffirming its previous 2022 net revenue and EBITDA guidance. Finally, the company announces that its first quarter 2022 wholesale bookings increased 125% versus the same period a year ago driven by Bailey 44 and Stateside.
Fourth Quarter & Fiscal Year 2021 Revenue Update
Estimated fourth quarter 2021 revenues is expected to come in line with our previous forecast of approximately $4 million. The fourth quarter revenue was slightly impacted due to supply chain delays the apparel industry is experiencing on a global scale. The delays were due to some of our products stuck in transport, which were limited to our Bailey 44 brand.
Estimated fiscal year 2021 net revenue is expected to increase 44% to $7.6 million versus $5.2 million a year ago. Fiscal year 2021 net revenues do not include the entire net revenue from 2021 for Harper & Jones or Stateside, as these brands were acquired during fiscal year 2021. Therefore, we only recognized the net revenue generated from the acquisition date through the end of the fiscal year. We acquired Harper & Jones on May 14, 2021, and we acquired Stateside on August 30, 2021.
First Quarter 2022 Wholesale Bookings Increased 125%
First quarter 2022 wholesale bookings booked in the fourth quarter of 2021, increased 125% year-over-year driven by an increase in our Bailey 44 and Stateside brands. These two brands are our largest two brands in the portfolio, and wholesale represents over 85% of their combined revenue. We still expect to receive additional first quarter 2022 wholesale bookings.
Hil Davis, Chief Executive Officer of Digital Brands Group, stated that, “our fourth quarter revenue performance continues the sequential quarter-over-quarter growth we experienced through the first three quarters of 2021, driven by both wholesale and e-commerce. This momentum has meaningfully increased as reflected in our very strong first quarter wholesale bookings and in our e-commerce new customer growth across all our brands.”
Reaffirming Fiscal Year 2022 Revenue and EBITDA Guidance
We are reaffirming our previous fiscal year 2022 net revenue guidance of $37.5 million to $42.5 million. This is a projected increase of approximately 350% from our 2021 updated fiscal year net revenue.
Additionally, the Company forecasts positive EBITDA for 2022, as it leverages its shared services platform. “Our 2022 revenue guidance reflects the power of our brand portfolio, especially as we are able to benefit from the full year revenue contribution from our acquisitions in 2021,” said Hil Davis, Chief Executive Officer of Digital Brands Group.
“This forecasted increase of 350% in our year over revenue growth does not reflect any potential additional acquisitions, nor does it reflect any meaningful benefit from our expected increase in marketing spend.”
“We expect to achieve positive EBITDA in 2022 due to the leverage we are experiencing from our shared services platform. We are excited about the cost savings we are experiencing from this shared services platform, especially as it relates to revenue generating marketing initiatives.”
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