DSTLD Brand Growth Drives Outstanding Christmas Sales Momentum at Digital Brands Group
LONDON: 28th December 2018: Digital Brands Group (the “Group”), a curated group of digital-first lifestyle brands based in Los Angeles, reports a 40% revenue increase in festive trading through December.
The Group’s performance has been underpinned by the quality and appeal of the DSTLD brand, an increasing range of products and collections, and effective digital-led marketing strategies. The growth demonstrates the Group’s momentum ahead of its planned listing on the AIM market of the London Stock Exchange during the first half of 2019. The Group’s pre-money valuation, based on its ongoing crowdfunding rounds, is just under £27m.
The Group’s strong performance has been driven by the continued growth of its flagship brand DSTLD (a vowel-less version of “distilled”). DSTLD is a rapidly growing, LA-based premium denim brand, which has been worn by high-profile celebrities including Alessandra Ambrosio, Sofia Richie and Cara Delevingne. DSTLD designs and delivers premium denim and luxury essentials without retail mark-up thanks to its direct-to-consumer business model. The brand has served more than 80k customers since its foundation.
Digital Brands Group’s purpose is to develop and acquire like-minded and fast-growing direct-to-consumer brands into one portfolio. The brands will leverage shared resources that support and market their products, while maintaining and creating their own unique customer values and identities. This model helps to drive down fixed costs, fuel innovation, support the customer experience and ultimately drive down prices for consumers.
In addition to DSTLD, the Group is launching its second brand, ACE Studios, a luxury performance suiting and sportswear brand, in early 2019, initially in the US market. ACE will leverage Digital Brands Group’s CEO Hil Davis’s extensive experience which includes founding J. Hilburn, a bespoke tailored clothing brand, which he built to a $55 million company in just six years.
The Group is closing its UK Crowdcube fundraising round, which has no minimum bar to invest, on 18 January 2019.
The fundraising is to support the Group in executing its build and buy strategy, with a plan to add additional new fast growing, digitally-native lifestyle and fashion brands to its portfolio. All brands in the Group will have a digital-first focus, in addition to an omni-channel customer experience, which will include showrooms, pop-ups and partnerships with retail brands and department stores.
Through its current UK Crowdcube fundraising and a Regulation A+ investment round in the USA, the company has raised more than £1.6m* in this current round. This takes its total funds raised through equity crowdfunding so far to more than £5.8m*.
Hil Davis, CEO of Digital Brands Group, commented:
“We are delighted with the Group’s outstanding momentum over the festive period and during 2018, particularly since our supply chain investments made in the Summer. This growth reflects the strength of our digital-led, direct to consumer model as well as the appeal of the DSTLD brand and the quality of our increasing product range.
“We are encouraged by the latest round of fundraising from customers and early stage investors in the US, UK and other territories who believe in our products, model and prospects.
“We are looking forward to what promises to be a transformational 2019 for the Group. We have hugely exciting plans including launching ACE Studios, our second brand, in January; bringing the fast-growing DSTLD brand to the UK market; and embarking on a potential, transformational IPO on the London Stock Exchange. Despite the macro-economic uncertainties in the UK market, particularly in the retail sector, we see tremendous opportunities for the Group. We believe that we will offer a unique opportunity for investors as a digital-led retailer, with a portfolio of unique brands, and a significant bias towards US dollar denominated revenue.”
*Based on a USD / GBP exchange rate taken on 27th December 2018.
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