Digital Brands Group, a US luxury lifestyle digital-first brand collective, has released its financial forecast for 2024, projecting substantial growth.
The company anticipates revenue between $27m and $30m for the year, up 70% to 90% from prior fiscal expectations.
In the first quarter of 2024, Digital Brands predicted its revenues to be $6m, supported by $4.5m in confirmed wholesale bookings.
The company's positive outlook extends to its earnings before interest, taxes, depreciation, and amortisation, with forecasts ranging between $1.5m and $2.0m for 2024.
This anticipated growth is attributed to the efficient use of its shared services platform and an increase in wholesale bookings.
Digital Brands expects to generate between $6.0m and $7.0m in internal free cash flow during the same period.
In November 2023, the board of directors of the company unanimously decided to start a formal review to explore strategic alternatives to maximise shareholder value.
Digital Brands Group CEO Hil Davis stated: "We are excited to showcase our commitment to shareholder growth in 2024. As part of this commitment, we continue to review strategic alternatives, especially given our assets and operating forecast relative to our public market value. We have several options to maximise shareholder value, which we will pursue if this dislocation remains."
Headquartered in California, Digital Brands Group is a curated collection of luxury lifestyle, digital-first brands, offering a variety of apparel through direct-to-consumer and wholesale basis.
In the third quarter of fiscal 2023, the company reported that its net revenues grew by 22.5% to $3.3m.
