The following is a summary of the Digital Brands Group, Inc. (DBGI) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Digital Brands Group reported Q1 net revenues of $3.6 million, a decline from $4.4 million due to delayed wholesale shipments.

• Gross profit margin increased YoY from 45.5% to 48.1%.

• Significant reduction in operating expense resulted in better operating leverage and an expected increase in operating and net income.

• Net operating loss reduced to $225,000 from $3.7 million YoY.

• The company reported a net loss of $684,000 or a loss of $0.46 per diluted share, an improvement from a loss of $6.1 million or $27.8 per share a year ago.

Business Progress:

• The company plans to recover from a revenue delay caused by shifted wholesale shipments in Q2.

• They opened a store in mid-April, seeing substantial weekly revenue increases.

• DBG plans strategy shifts in e-commerce in H2 to possibly boost profits.

• The company expects to see reductions in interest expenses by year-end and plans for internal cash flow positivity from H2 2023 onwards.

• DBG remains committed to a multichannel strategy, knowing the value of maintaining a balance between physical stores, e-commerce, and wholesale.

• They plan to open more physical stores, emphasizing belief in the customer appreciation for a fully-rounded shopping experience, while retail stores will mainly serve as a customer acquisition strategy with digital channels for retention and profitability.

More details: Digital Brands Group IR

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