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Digital Brands Group is moving to brick-and-mortar with plans to open 50 stores

Tuesday, Jan 23, 2024

Digital Brands Group, which owns brands such as Stateside, Bailey 44, Sundry and others, is planning to move their business offline. Over the next several years, the company is slated to open 50 stores with the first opening this coming March. 
“We believe the best performing retail brands will have three legs to their growth story: (1) wholesale, (2) e-commerce and (3) retail stores,” CEO Hil Davis said in a statement. “We believe these stores will also drive revenue in our wholesale and e-commerce channels based on data from other brands who have opened retail stores.”
The company said the stores will drive brand awareness, lead to higher average basket size and help with customer acquisition and retention. The company forecasts that each store will generate over $1.5 million annually with positive cash flow. With 50 stores within its fleet, the company expects to generate over $75 million annually in revenue and store-level cash flow.  Digital Brands’ first store will be used to clear excess inventory at a higher margin than if it were to sell via an off-price channel. The company has “a significant amount of excess inventory with its Sundry acquisition” that was not sold on their e-commerce site. Their first store is expected to generate over $500,000 in annual cash flow. In their most recent quarter, Digital Brands Group reported a 22.5% year-over-year increase to about $3.3 million. Earlier this month, the company released financial projections for the year. Digital Brands expects fiscal 2024 revenue to be between $27 million to $30 million. For the first quarter, the company projects revenue will be about $6 million, based on $4.5 million in confirmed wholesale bookings. Source: Digital Brands Group – Sundry Photo Credit: Retail Insight Network

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