Digital Brands Group Inc (NASDAQ: DBGI) witnessed a 63% pre-market rise after a public announcement of the company’s encouraging 2022 revenue guidance.
With a sharp rise from $37.5 million to $42.5 million, DBG has recorded an expected increase of roughly 350% from 2021’s fiscal predictions, with the current share price sitting at 4.82.
The sharp pre-market rise reflects the ambitious growth strategy of DGB – a lifestyle collection of digital-first brands working to redefine the retail space, thriving off a powerful brand portfolio and an ambitious acquisition plan moving into 2022.
The pre-market movement also comes off the back of expected positive EBITDA, supported by its shared services platform.
DBG has made a name for themselves through a model built on both direct-to-consumer and wholesale pragmatism – revolving around a founding as a digitally native-first vertical brand; utilising the e-commerce boom to plant firm, lasting foundations.
Looking deeper at DBG’s prospective growth: Hil Davis, Chief Executive Officer of Digital Brands Group stated “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.”
DBG’s FY2022 revenue contains some promising numbers for the year ahead, and it didn’t take investors long to catch on. With such an aggressive acquisition model, we can expect some noticeable growth from the Digital Brands Group in the near future.
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