- Digital Brands Group’s net revenue during the second quarter rose 69.6% year over year to $4.5 million, according to a Thursday press release. The reported revenue excludes revenue from its Harper & Jones brand.
- The company — which owns brands including Stateside, Bailey 44, Sundry and Dstld — reported its income from operations was $9 million compared to a loss of $10.6 million the year before. Digital Brands Group also reported a net income for the quarter of $5 million compared to a loss of $9.5 million last year.
- Sales and marketing expenses for the company decreased 20.1% to $1.1 million, while gross margin increased 40.4% to $2.2 million. The Q2 earnings come after the company on Monday said in a notice to the U.S. Securities and Exchange Commission that it could not file its 10-Q report within the prescribed time period because it needed “additional time to prepare and finalize the financial statements and other disclosures.”
Digital Brands Group’s positive second quarter was thanks in part to the company’s Sundry acquisition.
"We are pleased to see the significant revenue growth and operating leverage since the acquisition of Sundry. In fact, based on wholesale bookings and current e-commerce trends, our third quarter and fourth quarter revenues will be meaningfully higher than this quarter,” CEO Hil Davis said in a statement. “We are also excited about our two new revenue channels that will launch this Fall, which are our proprietary affiliate program and our multi-brand retail store.”
The latest earnings from the company follow its first-quarter results in May, which saw net revenue increase 48% year over year to about $5.1 million, while its net loss decreased 22% to $6.14 million. Davis said on an earnings call at the time that the company believed it could operate over 50 retail stores.
Digital Brands Group said in its annual report filed in April that the company was in technical default on at least two promissory notes with aggregate principal amounts worth millions of dollars. The company’s first quarter filing in May showed it was still in technical default on these notes.