DBG Reports Fiscal Year 2021 Financial Results
Digital Brands Group Reports Year 2021 Financial Results
Digital Brands Group reported financial results for its fourth quarter and 2021 fiscal year ended December 31, 2021.
Results for the Fourth Quarter
Net revenues increased 425% to $4.0 million in the fourth quarter of 2021 compared to $0.8 million in the fourth quarter of 2020. This revenue growth was experienced across all our portfolio brands.
Net loss attributable to common stockholders in the fourth quarter of 2021 was $9.7 million, or $0.76 per diluted share. The net loss included $3.8 million in non-cash expenses. This compared to a net loss attributable to common stockholders of $2.6 million, or $3.97 per diluted share in the fourth quarter of 2020.
Results for the Fiscal 2021
Net revenues for fiscal 2021 increased 44.8% to $7.6 million compared to $5.2 million in 2020.
Net loss attributable to common stockholders in fiscal 2021 was $32.4 million, or $4.21 per diluted share. The net loss included $16.4 million in non-cash expenses. This compared to a net loss attributable to common stockholders in fiscal 2020 of $10.7 million, or a net loss of $16.15 per diluted share, which includes $0.9 million in non-cash expenses.
"We continued to build momentum throughout 2021 as we were able to leverage the cash raised on our IPO. We believe this momentum is illustrated by our fourth quarter revenue growth of 425%, as well as our recently announced January and February 2022 revenue growth," said Hil Davis, Chief Executive Officer of Digital Brands Group. "Our operating losses were driven by our low revenue results, especially in the first nine months of 2021. We expect to leverage these fixed costs in 2022 with the revenue momentum we have experienced."
"We added two brands to our portfolio in 2021. We also announced a definitive agreement to acquire Sundry in January 2022. We are confident that we can continue to drive revenue growth in 2022 and beyond though both organic revenue growth and through acquisitions. We are also confident we can leverage our fixed costs in 2022 and beyond with this revenue growth."
Fourth Quarter 2021 Highlights
Net revenues increased 425% to $4.0 million in the fourth quarter of 2021 compared to $0.8 million in the fourth quarter of 2020. The increase in net sales was driven by the increase in revenue at all our brands and the inclusion of Stateside and Harper & Jones on a pro-forma basis.
Gross profit margin increased 42.2% year over year to 37.4% from negative 4.8%. Gross profit increased by $1.5 million due to improved gross margins at all our brands.
Net loss attributable to common stockholders in the fourth quarter of 2021 was $9.7 million, or $0.76 per diluted share. This compared to a net loss attributable to common stockholders of $2.6 million, or $3.97 per diluted share in the fourth quarter of 2020.
Full year 2021 financial details are included in the Company's Form 10-K for the twelve months ended December 31, 2021.