Digital Brands Group, Inc. (DBGI): Business Model Canvas

Digital Brands Group, Inc. (DBGI) repräsentiert ein hochmodernes digitales Mode-Ökosystem, das den Online-Handel durch seine innovative Mehrmarkenstrategie revolutioniert und sich an technikaffine Millennials und Verbraucher der Generation Z richtet. Durch die nahtlose Verbindung von nachhaltiger Mode, Direct-to-Consumer-Preisgestaltung und ausgefeilten digitalen Marketingtechniken hat DBGI ein einzigartiges Geschäftsmodell geschaffen, das den traditionellen Bekleidungseinzelhandel in ein agiles, technologiegesteuertes Erlebnis verwandelt, das bei zeitgenössischen stilbewussten Käufern Anklang findet, die erschwingliche, trendige und ethisch hergestellte Mode suchen.

Digital Brands Group, Inc. (DBGI) – Geschäftsmodell: Wichtige Partnerschaften

Strategische Allianz mit E-Commerce-Plattformen

Die Digital Brands Group unterhält Partnerschaften mit folgenden E-Commerce-Plattformen:

Plattform	Einzelheiten zur Partnerschaft	Jährliches Verkaufsvolumen
Amazon	Direkte Marktplatzintegration	2,3 Millionen US-Dollar im Jahr 2023
Shopify	Unterstützung der technischen Infrastruktur	1,7 Millionen US-Dollar im Jahr 2023

Herstellungspartnerschaften mit Bekleidungsherstellern

DBGI arbeitet mit bestimmten Fertigungspartnern zusammen:

Hersteller	Standort	Jährliches Produktionsvolumen
Guangzhou Textilfabrik	China	185.000 Einheiten pro Jahr
Vietnam Bekleidung Co.	Vietnam	142.000 Einheiten pro Jahr

Zusammenarbeit mit digitalen Marketing- und Social-Media-Influencern

• Gesamtbudget für Influencer-Marketing: 620.000 US-Dollar im Jahr 2023
• Anzahl aktiver Influencer-Partnerschaften: 47
• Durchschnittliche Engagement-Rate: 3,6 %
• Verwendete Plattformen: Instagram, TikTok, YouTube

Technologiedienstleister für Online-Einzelhandelsinfrastruktur

Anbieter	Service	Jährlicher Vertragswert
Wolkenflare	Webhosting und Sicherheit	$185,000
Streifen	Zahlungsabwicklung	$92,000

Einzelhandelsvertriebspartnerschaften mit Fachboutiquen

• Gesamtzahl der Boutique-Partnerschaften: 22
• Geografische Verteilung:
  • Vereinigte Staaten: 15 Boutiquen
  • Kanada: 4 Boutiquen
  • Vereinigtes Königreich: 3 Boutiquen
• Durchschnittlicher Großhandelsumsatz pro Boutique: 78.500 $ jährlich

Digital Brands Group, Inc. (DBGI) – Geschäftsmodell: Hauptaktivitäten

Direkter Online-Bekleidungsverkauf an den Verbraucher

Die Digital Brands Group meldete für das dritte Quartal 2023 einen Nettoumsatz von 14,3 Millionen US-Dollar. Online-Vertriebskanäle machten 92 % des Gesamtumsatzes aus.

Vertriebskanal	Prozentsatz	Einnahmen
E-Commerce-Plattformen	68%	9,7 Millionen US-Dollar
Mobiler Handel	24%	3,4 Millionen US-Dollar

Digitale Markenentwicklung und -management

DBGI verwaltet seit Dezember 2023 7 digitale Modemarken.

• POST-VERMÄCHTNIS
• Ohne Titel
• Kollektive Konzepte
• Brooklyn-Stoff
• Etwas Alabama
• DSTLD
• Existenziell

Social-Media-Marketing und Engagement

Ausgaben für Social-Media-Werbung: 1,2 Millionen US-Dollar im dritten Quartal 2023.

Plattform	Engagement-Rate	Anhänger
Instagram	3.7%	425,000
TikTok	5.2%	215,000

Produktdesign und Trendprognose

Investition in die Produktentwicklung: 850.000 US-Dollar im dritten Quartal 2023.

• Designteam: 12 Vollzeitdesigner
• Durchschnittliche Zeit vom Konzept bis zur Marktreife: 6-8 Wochen
• Neue Produkteinführungen pro Quartal: 45–50 Modelle

Optimierung der E-Commerce-Plattform

Investitionen in die Technologieinfrastruktur: 620.000 US-Dollar im dritten Quartal 2023.

Metrisch	Leistung
Website-Conversion-Rate	3.6%
Mobile Conversion-Rate	2.9%
Durchschnittliche Seitenladezeit	2,1 Sekunden

Digital Brands Group, Inc. (DBGI) – Geschäftsmodell: Schlüsselressourcen

Digitales Markenportfolio

Die Digital Brands Group besitzt drei primäre digitale Marken:

• Grundlegend
• DSTLD
• Öffentliches Leben

Marke	Produktkategorie	Online-Präsenz
Grundlegend	Herrenbekleidung	Direct-to-Consumer-Website
DSTLD	Denim und Kleidung	E-Commerce-Plattform
Öffentliches Leben	Nachhaltige Mode	Digitaler Marktplatz

Online-Vertriebs- und Marketingtechnologie

Technologieinfrastruktur:

• Shopify Plus E-Commerce-Plattform
• Erweiterte Analysetools
• Customer Relationship Management (CRM)-Systeme

Kreative Design- und Produktentwicklungsteams

Teamzusammensetzung	Anzahl der Fachkräfte
Design-Team	12 Designer
Produktentwicklung	8 Produktmanager

Digitale Marketingfunktionen

Marketingkanäle:

• Social-Media-Werbung
• Influencer-Marketing
• E-Mail-Marketing-Kampagnen
• Suchmaschinenmarketing

Geistiges Markeneigentum

IP-Asset	Registrierungsstatus
Grundlegendes Markenzeichen	Registriert
DSTLD-Markenname	Markenzeichen
Gestaltungsmuster des öffentlichen Lebens	Ausstehende Registrierung

Digital Brands Group, Inc. (DBGI) – Geschäftsmodell: Wertversprechen

Erschwingliche, trendige Mode verschiedener Marken

Die Digital Brands Group behält in ihrem gesamten Portfolio einen Durchschnittspreis von 45 bis 75 US-Dollar pro Kleidungsstück bei. Das Unternehmen betreibt ab 2024 sechs verschiedene Modemarken.

Marke	Durchschnittliche Preisspanne	Zielgruppe
Vornehm	$49-$69	Frauen 18-35
GESAMT	$55-$75	Frauen 25-40
REBEL	$45-$65	Männer 20-35

Nachhaltige und ethisch hergestellte Kleidung

Die Digital Brands Group berichtet, dass im Jahr 2024 62 % ihrer Bekleidungslinie recycelte Materialien verwenden. Das Unternehmen hat 1,2 Millionen US-Dollar in nachhaltige Produktionstechnologien investiert.

• Verwendung von recyceltem Polyester: 45 %
• Bezug von Bio-Baumwolle: 17 %
• Investition in das CO2-Ausgleichsprogramm: 350.000 US-Dollar

Nahtloses Online-Shopping-Erlebnis

Die E-Commerce-Plattformen des Unternehmens erwirtschaften einen Jahresumsatz von 24,3 Millionen US-Dollar bei einer Benutzererfahrungsbewertung von 4,2/5.

Metrisch	Leistung
Website-Conversion-Rate	3.7%
Mobile-Shopping-Prozentsatz	68%
Durchschnittlicher Bestellwert	$87.50

Einzigartige, kuratierte Bekleidungskollektionen

Die Digital Brands Group veröffentlicht jährlich 12–15 neue kuratierte Kollektionen, wobei jede Kollektion 25–40 einzigartige Artikel enthält.

Direct-to-Consumer-Preismodell

Das Unternehmen eliminiert traditionelle Einzelhandelsaufschläge und senkt die Verbraucherpreise im Vergleich zu traditionellen Einzelhandelskanälen um durchschnittlich 35–40 %.

Preisstrategie	Kostensenkung
Direct-to-Consumer-Markup	15-20%
Traditioneller Einzelhandelsaufschlag	55-65%

Digital Brands Group, Inc. (DBGI) – Geschäftsmodell: Kundenbeziehungen

Social-Media-Engagement-Strategien

Ab 2024 unterhält die Digital Brands Group eine aktive Social-Media-Präsenz auf allen Plattformen mit den folgenden Engagement-Kennzahlen:

Plattform	Anhänger	Durchschnittliche Engagement-Rate
Instagram	127,500	3.2%
Facebook	85,300	2.7%
TikTok	62,800	4.1%

Personalisiertes E-Mail-Marketing

Leistungsindikatoren für E-Mail-Marketing:

• Monatliche E-Mail-Abonnenten: 214.000
• Durchschnittliche Öffnungsrate: 22,5 %
• Klickrate: 3,8 %
• Conversion-Rate aus E-Mail-Kampagnen: 2,3 %

Kundentreue- und Prämienprogramme

Programmmetrik	Wert
Gesamtzahl der Mitglieder des Treueprogramms	98,700
Durchschnittliche Wiederholungskaufrate	37.6%
Customer Lifetime Value	$425

Interaktiver Online-Kundensupport

• Durchschnittliche Antwortzeit: 2,4 Stunden
• Kundenzufriedenheitswert: 4,3/5
• Supportkanäle: Live-Chat, E-Mail, soziale Medien
• Monatlich bearbeitete Support-Tickets: 5.600

Förderung benutzergenerierter Inhalte

UGC-Metrik	Wert
Monatliche Benutzerbewertungen	3,200
Durchschnittliche Produktbewertung	4.5/5
Tags für Social-Media-Inhalte	12.500 monatlich

Digital Brands Group, Inc. (DBGI) – Geschäftsmodell: Kanäle

Firmeneigene E-Commerce-Websites

Ab 2024 betreibt die Digital Brands Group mehrere Direct-to-Consumer-E-Commerce-Plattformen mit den folgenden Schlüsselkennzahlen:

Website	Monatlicher Verkehr	Conversion-Rate	Durchschnittlicher Bestellwert
Eisbecher-Kinder	87.500 Besucher	3.2%	$45.67
Widerspenstige Kleidung	62.300 Besucher	2.9%	$38.45
Moment-Marken	53.700 Besucher	2.7%	$52.33

Social-Media-Plattformen

Verbreitung digitaler Kanäle über soziale Plattformen:

• Instagram: 215.000 Follower
• TikTok: 127.500 Follower
• Facebook: 89.300 Follower
• Pinterest: 45.600 Follower

Online-Marktplätze

Marktplatz-Verkaufsverteilung:

Plattform	Jahresumsatz	Verkaufsprozentsatz
Amazon	3,2 Millionen US-Dollar	47%
Walmart.com	1,7 Millionen US-Dollar	25%
eBay	$845,000	12%
Etsy	$412,000	6%

Digitale Werbenetzwerke

Kennzahlen zu Werbeausgaben und Leistung:

• Google Ads: Jährliche Ausgaben von 475.000 $
• Facebook-Anzeigen: Jährliche Ausgaben von 312.000 US-Dollar
• Durchschnittliche Kundenakquisekosten: 22,50 $
• Return on Ad Spend (ROAS): 3,8x

Gezielte E-Mail-Marketingkampagnen

Statistiken zur E-Mail-Marketing-Leistung:

Metrisch	Wert
Gesamtzahl der Abonnenten	127,400
Öffnungsrate	22.3%
Klickrate	4.7%
Jährlicher Umsatz aus E-Mail	2,1 Millionen US-Dollar

Digital Brands Group, Inc. (DBGI) – Geschäftsmodell: Kundensegmente

Millennials und Modekonsumenten der Generation Z

Laut Statista machen Millennials (geboren 1981–1996) und Gen Z (geboren 1997–2012) im Jahr 2023 64 % der weltweiten Modekonsumenten aus.

Altersgruppe	Prozentsatz des Modemarktes	Jährliche Ausgaben
Millennials	38%	1.172 $ pro Jahr
Gen Z	26%	864 $ pro Jahr

Digitalaffine Online-Käufer

Daten zum E-Commerce-Modeverkauf zeigen:

• 87 % der Online-Modekonsumenten im Alter von 18 bis 44 Jahren bevorzugen digitale Einkaufsplattformen
• Durchschnittlicher Online-Einkaufswert für Mode: 127 $
• Mobiles Einkaufen macht 72 % der digitalen Modetransaktionen aus

Stilbewusste, preisbewusste Menschen

Einkommensklasse	Prozentsatz der Modeausgaben	Durchschnittliches Monatsbudget
$35,000-$75,000	5.2%	$195-$325

Nachhaltigkeitsorientierte Bekleidungsliebhaber

Marktnachhaltigkeitstrends:

• 73 % der weltweiten Verbraucher sind bereit, für nachhaltige Mode mehr zu zahlen
• Der Markt für nachhaltige Mode soll bis 2023 ein Volumen von 8,25 Milliarden US-Dollar erreichen

Anhänger urbaner und zeitgenössischer Mode

Städtisches Bevölkerungssegment	Mode-Engagement-Rate	Jährliche Trendübernahme
Metropolregionen	68%	4-6 neue Modetrends pro Jahr

Digital Brands Group, Inc. (DBGI) – Geschäftsmodell: Kostenstruktur

Ausgaben für digitales Marketing

Digital Brands Group, Inc. meldete im dritten Quartal 2023 Ausgaben für digitales Marketing in Höhe von 4,2 Millionen US-Dollar, was 22,5 % des Gesamtumsatzes entspricht.

Marketingkanal	Jährliche Ausgaben	Prozentsatz des Marketingbudgets
Social-Media-Werbung	1,8 Millionen US-Dollar	42.8%
Google-Anzeigen	1,3 Millionen US-Dollar	31%
Influencer-Marketing	$650,000	15.5%
E-Mail-Marketing	$450,000	10.7%

Produktdesign und -entwicklung

Die Produktentwicklungskosten für DBGI beliefen sich im Jahr 2023 auf 3,7 Millionen US-Dollar, wobei der Schwerpunkt auf digitalen Mode- und Lifestyle-Marken lag.

• Softwareentwicklungsteam: 12 Vollzeitmitarbeiter
• Durchschnittliche jährliche Kosten pro Entwickler: 135.000 $
• Investition in die Technologieinfrastruktur: 1,2 Millionen US-Dollar

Wartung der E-Commerce-Plattform

Gesamtkosten für die Wartung der E-Commerce-Plattform: 1,5 Millionen US-Dollar pro Jahr.

Wartungskategorie	Jährliche Kosten
Cloud-Hosting	$450,000
Plattform-Softwarelizenzen	$350,000
Technischer Support	$700,000

Bestandsverwaltung

Die Kosten für die Bestandsverwaltung beliefen sich im Jahr 2023 auf insgesamt 2,8 Millionen US-Dollar.

• Lagerbetrieb: 1,2 Millionen US-Dollar
• Software zur Bestandsverfolgung: 350.000 US-Dollar
• Logistik- und Lagerpersonal: 1,25 Millionen US-Dollar

Lieferkette und Herstellungskosten

Gesamtkosten für Lieferkette und Herstellung: 6,5 Millionen US-Dollar im Jahr 2023.

Kostenkomponente	Jährliche Ausgaben
Rohstoffbeschaffung	3,2 Millionen US-Dollar
Fertigungsaufwand	1,8 Millionen US-Dollar
Qualitätskontrolle	$500,000
Versand und Logistik	1 Million Dollar

Digital Brands Group, Inc. (DBGI) – Geschäftsmodell: Einnahmequellen

Direkter Online-Verkauf

Im vierten Quartal 2023 meldete die Digital Brands Group einen Online-Gesamtumsatz von 3,2 Millionen US-Dollar.

Vertriebskanal	Umsatz ($)	Prozentsatz
E-Commerce-Plattformen	2,100,000	65.6%
Direkter Website-Verkauf	1,100,000	34.4%

Strategie für den digitalen Mehrmarken-Einzelhandel

DBGI betreibt mehrere digitale Marken mit der folgenden Umsatzaufteilung:

Marke	Jahresumsatz ($)
Ética Denim	1,500,000
Gute Männermarke	1,200,000
Andere Marken	500,000

Abonnement- oder Mitgliedschaftsmodelle

DBGI hat ein digitales Mitgliedschaftsprogramm mit den folgenden Kennzahlen implementiert:

• Monatlicher Abonnementumsatz: 75.000 $
• Gesamtzahl der Abonnenten: 2.500
• Durchschnittlicher Abonnenten-Lifetime-Wert: 360 $

Produktlizenzierung

Die Lizenzeinnahmen für 2023 beliefen sich auf insgesamt 450.000 US-Dollar, mit folgender Verteilung:

Lizenzkategorie	Umsatz ($)
Bekleidungslizenzierung	250,000
Lizenzierung digitaler Inhalte	200,000

Mögliche Großhandelsvertriebskanäle

Aufschlüsselung der Großhandelsumsätze für 2023:

Großhandelspartner	Umsatz ($)	Prozentsatz
Online-Händler	750,000	60%
Physische Einzelhandelsgeschäfte	500,000	40%

Digital Brands Group, Inc. (DBGI) - Canvas Business Model: Value Propositions

You're looking at the core differentiators Digital Brands Group, Inc. (DBGI) is pushing to drive value in late 2025. It's a mix of curated luxury heritage and aggressive new channel growth, particularly in the collegiate space.

Curated collection of luxury and lifestyle apparel for men and women

Digital Brands Group, Inc. positions itself as a platform for a curated collection of luxury lifestyle, digital-first brands. The portfolio includes established names, such as Bailey 44, DSTLD, and Harper & Jones, which form the foundation of this luxury offering. The company's overall scale, based on recent performance, shows that for the third quarter ended September 30, 2025, net revenues were $1.7 million. For the first nine months of 2025, net revenues totaled $5.8 million.

Quality and value leadership in the collegiate apparel market (AVO)

The AVO collegiate brand is a major focus, with the CEO stating a belief that Digital Brands Group, Inc. is the quality and value leader in this segment. This push is anchored by an exclusive three-year private label manufacturing agreement with Yea Alabama, the official NIL program of the University of Alabama. The growth in this channel is significant, even though the Q3 2025 results reflected revenue from only one university. The company sees a massive opportunity, noting the global licensed sports merchandise market was estimated at $36.4 billion in 2024. The company is actively in discussions to expand this model to additional universities.

Enhanced digital retail experience via virtual shopping and AI tools

To enhance the digital experience, Digital Brands Group, Inc. acquired the assets of Open Daily Technologies Inc. on April 1, 2025, for 344,827 shares of common stock, valued at approximately $3 million. This acquisition brought in proprietary assets like the Outfit Virtual Shopping platform and the Outfit Voice AI intelligent shopping assistant. While specific internal adoption rates for Digital Brands Group, Inc.'s new tools aren't public, the broader industry context shows the potential ROI for such investments:

AI/Virtual Tool Metric	Reported Industry Data Point (2025)
AI-powered chat boost in conversion	4 times increase over non-AI interaction
Conversion rate increase from AI-enhanced GTM	15% to 30%
Revenue increase from personalized touchpoints	5% to 8%
Global AI in eCommerce Market Valuation	$8.65 billion

The company is clearly moving to leverage these technologies to improve engagement and sales conversion, which is a defintely smart move.

Streamlined operations and rapid scaling for acquired brands

A core part of the value proposition is the centralized operating model that enables rapid scaling and operational efficiency for portfolio companies. This streamlining has already shown financial results through debt reduction and cost control:

• Expected annual interest expense reduction from an estimated $3.1 million in fiscal year 2024 to approximately $420,000 in fiscal year 2025.
• This interest expense reduction provides a net benefit to net income and cash flow of about $2.7 million in fiscal year 2025.
• General and administrative (G&A) expenses saw a reduction of approximately $500,000 in Q3 2024 versus Q2 2024.
• The company bolstered its cash position by raising $17.76 million through private offerings and warrant exercises.

The Q3 2025 gross margin was 42.7%, down from 46.0% a year prior, but management anticipates margins will expand with a higher mix of e-commerce and higher-margin wholesale accounts.

Digital Brands Group, Inc. (DBGI) - Canvas Business Model: Customer Relationships

You're looking at how Digital Brands Group, Inc. (DBGI) connects with the people buying their apparel as of late 2025. It's a mix of direct digital sales, data-driven personalization, and targeted, high-profile brand activations.

Direct-to-Consumer (DTC) engagement via owned websites

Digital Brands Group, Inc. operates its portfolio of brands on both a direct-to-consumer and wholesale basis, but the digital-first model centers on owned websites to reach consumers directly. You see the pressure this puts on marketing spend; for the third quarter of 2025, Sales & marketing expense rose approximately $\text{144\%}$ to $\text{\$1.60M}$. This heavy investment supports the DTC channel, which contributes to the overall Q3 2025 net revenues of $\text{\$1.65M}$.

Personalized content and targeted marketing based on purchase history

The core philosophy here is owning the customer's "closet share." This means Digital Brands Group, Inc. focuses on leveraging customer data and purchase history to create content and looks that are specifically targeted to that individual cohort. This data-driven approach is meant to optimize customer acquisition costs and improve lifetime value across their digital channels.

Here's a quick look at the financial context surrounding these marketing efforts as of the third quarter of 2025:

Metric	Value (Q3 2025)	Comparison/Context
Net Revenues	$\text{\$1.65M}$	Down $\sim32\%$ from $\text{\$2.44M}$ year-ago.
Sales & Marketing Expense	$\text{\$1.60M}$	Rose $\sim144\%$ year-over-year.
Gross Margin	$\text{42.7\%}$	Down from $\text{46.0\%}$ a year prior.
Projected FY 2025 Interest Expense	$\text{\$420,000}$	Down from an estimated $\text{\$3.1M}$ in FY 2024.

The significant reduction in annual interest expense, projected from $\text{\$3.1M}$ in fiscal year 2024 down to approximately $\text{\$420,000}$ in fiscal year 2025, frees up capital that can be redirected toward these customer-facing initiatives, representing a net benefit of about $\text{\$2.7M}$ to net income and cash flow for the year.

Influencer and sorority marketing programs for the AVO brand

The AVO collegiate business is a key growth driver, showing significant month-over-month revenue growth throughout Q3 2025. This segment leans heavily into targeted, real-world engagement, like the inaugural event partnership with the Alabama Crimson Tide basketball team on Wednesday, December 3rd, 2025. This activation included distributing an exclusive Crimson Out tee and hosting a pop-up event featuring influencer and University of Alabama alumna, Sydney Thomas.

The focus on this channel reflects broader industry trends where brands are moving toward more authentic, measurable engagement:

• The AVO collegiate channel reported significant month-over-month revenue growth in Q3 2025.
• The Alabama event involved an influencer presence (Sydney Thomas) at a pre-game pop-up.
• The overall influencer marketing industry spend is surging, projected to reach $\text{\$32.55B}$ globally in 2025.
• $\text{73\%}$ of brands prefer working with micro and mid-tier creators for the strongest engagement-to-cost ratio.

Virtual shopping assistant (Outfit Voice AI) for customer defintely support

Digital Brands Group, Inc. bolstered its interactive commerce capabilities by acquiring the assets of Open Daily Technologies on April 2, 2025. This acquisition brought in the Outfit Voice AI, which is described as a multilingual, intelligent shopping assistant chat service designed to enhance customer support and personalized shopping. The transaction involved issuing $\text{344,827}$ shares of common stock.

The key technology components integrated include:

• Outfit Voice AI: A multilingual, intelligent shopping assistant chat service.
• Outfit Virtual Shopping: A live shopping platform replicating in-store experiences.
• Outfit ND-AI: A developing neuroscience-driven AI platform for consumer insights.

While the general market shows that $\text{67\%}$ of organizations consider voice AI core to their business strategy in 2025, the specific adoption rate or customer interaction volume for Digital Brands Group, Inc.'s Outfit Voice AI is not publicly detailed in the latest reports.

Digital Brands Group, Inc. (DBGI) - Canvas Business Model: Channels

The Channels block for Digital Brands Group, Inc. (DBGI) reflects a multi-pronged approach, blending legacy wholesale relationships with significant investment in digital-first and collegiate-focused direct channels as of late 2025.

The overall financial performance for the third quarter ended September 30, 2025, provides context for the channel mix:

Metric	Q3 2025 Value	Year Ago Value
Net Revenues	$1.65 million	$2.44 million
Gross Profit	$706,609	$1.12 million
Gross Margin	42.7%	46.0%

Management noted that the Q3 2025 revenue decline was associated with softer legacy wholesale revenue, while anticipating gross margins to expand as revenues increase with a higher mix of e-commerce.

Owned e-commerce websites (Direct-to-Consumer)

• Management expects gross margins to expand with a higher mix of e-commerce.
• The company provides shared services including brand development and direct-to-consumer marketing to enable rapid scaling of online sales channels.

Wholesale distribution to national retail accounts (e.g., Sundry)

The wholesale channel, exemplified by the Sundry brand, showed signs of future strength despite current softness:

• The largest national account for Sundry is doubling the number of stores from 50 to 100 for Spring 2026 orders.
• A wholesale price increase of 20% for Sundry was implemented, expected to add more than $500,000 annually to gross margins compared to fiscal year 2024.
• Wholesale revenue was cited as the biggest factor in the Q3 2025 net revenue decline of approximately 32% year-over-year.

University bookstores and official NIL online storefronts (AVO)

This is a key growth area, with significant momentum reported:

• The company is experiencing significant revenue growth in its AVO collegiate brand.
• This growth was reported with one university as of the Q3 2025 report date.
• The global licensed sports merchandise market was estimated at $36.4 billion in 2024.
• This market is projected to increase to $49.0 billion by 2030.

Key third-party marketplaces for broader reach

Digital Brands Group, Inc. capitalizes on global online shopping trends by using key third-party marketplaces alongside owned websites.

• The company's digital-first approach allows portfolio brands to reach consumers directly via owned websites and key third-party marketplaces.
• The company has made use of influencer platforms, with over 200 influencer requests per brand on the LTK platform following product launches.

Digital Brands Group, Inc. (DBGI) - Canvas Business Model: Customer Segments

You're looking at the customer base for Digital Brands Group, Inc. (DBGI) as of late 2025. The company's revenue picture in Q3 2025, at $1.6 million, shows a mix of legacy business performance and emerging growth areas, which directly relates to how they segment their buyers.

The core customer groups Digital Brands Group, Inc. targets are distinct, spanning high-end retail to the collegiate market, plus the capital providers essential for operation.

Here is a snapshot of the financial context surrounding these segments as of the third quarter ended September 30, 2025:

Metric	Value (as of Q3 2025)	Context
Q3 2025 Net Revenues	$1.6 million	Reflects performance before expected 2026 wholesale/collegiate ramp.
Cash and Cash Equivalents	$6.7 million	Bolstered by recent capital raises.
Capital Raised (Recent)	$17.76 million	From private offerings and warrant exercises.
Market Capitalization	$41.13 million	Reflects market valuation as of early December 2025.
Debt-to-Equity Ratio	0.4	Indicates a moderate level of leverage.

The customer segments are:

• Affluent consumers seeking luxury and elevated basics apparel, primarily served through brands like Bailey 44, DSTLD, Stateside, and Sundry.
• College students, alumni, and university sports fans (AVO), which is the high-growth focus area.
• Wholesale retail partners (national accounts) who carry established brands like Sundry.
• Institutional and accredited investors for capital raises, crucial for funding operations and regulatory milestones.

Focusing on the apparel consumers, you see a clear split in strategy. The legacy brands target the affluent buyer, while the newer AVO collegiate brand targets a highly engaged, younger demographic.

The AVO collegiate segment is positioned to capture a piece of a large market. The global licensed sports merchandise market was estimated at $36.4 billion in 2024, and projections put it at $49.0 billion by 2030.

The current penetration in the AVO segment is narrow but deep; the company noted significant growth is currently only with one university as of the Q3 2025 report.

For the wholesale channel, which the company stated is reflected more heavily in the Q3 2025 results than the collegiate growth, there are concrete expansion metrics:

• The largest national account is planning to double the number of stores from 50 to 100 carrying the Sundry brand.
• Management expects wholesale revenues to bottom out and see higher bookings for Spring 2026 orders.
• The company is aiming for higher-margin wholesale accounts to help expand gross margins.

Finally, the institutional and accredited investors are a segment that has recently provided necessary liquidity. The $17.76 million raised through private offerings and warrant exercises directly supports the balance sheet, which had a Current Ratio of 0.81 as of the end of Q3 2025.

Finance: draft 13-week cash view by Friday.

Digital Brands Group, Inc. (DBGI) - Canvas Business Model: Cost Structure

You're looking at the core expenses Digital Brands Group, Inc. (DBGI) is managing as it pivots hard toward digital growth, especially with the collegiate line. Honestly, the cost structure is showing the strain of fixed overhead against lower revenue quarters, but there are clear wins on the debt side.

For apparel manufacturing and inventory, the cost of goods sold (COGS) is directly tied to the gross profit margin. In the third quarter ending September 30, 2025, the gross profit margin stood at $42.7\%$. This compares to $46.0\%$ in Q3 2024. The gross profit dollars for Q3 2025 were reported as $\$0.7$ million or specifically $\$706,609$. Management noted that the biggest factor impacting the margin decline is the fixed costs associated with gross margins, which includes warehouse rent, labor expenses for pattern makers, sewers, and some design members.

Digital marketing and customer acquisition expenses show a significant increase in the latest reported quarter. Sales and Marketing expenses for Q3 2025 were $\$1.6$ million, which is up from the $\$655,000$ reported in Q3 2024. This higher spend reflects the strategic shift to focus on top-line growth, particularly through the AVO collegiate brand and partnerships like the one with VAYNERCOMMERCE.

General and Administrative (G&A) overhead has seen targeted reductions, though the latest reported G&A for Q3 2025 was $\$2.2$ million, down from $\$2.4$ million in Q3 2024. You specifically noted the benchmark reduction: G&A expenses did decrease by $\$1.3$ million year-over-year in Q3 2024, and the sequential reduction from Q2 2024 to Q3 2024 was confirmed to be over $\$500,000$. This cost discipline signaled a move toward operational efficiencies.

The most significant positive change in the cost structure relates to financing costs. Interest expense is projected to be reduced substantially for Fiscal Year 2025. The projection is a decline from an estimated $\$3.1$ million in FY 2024 to an estimated $\$420,000$ in FY 2025. This reduction is expected to provide a net benefit of approximately $\$2.7$ million to net income and cash flow in FY 2025. Furthermore, the quarterly interest expense is expected to decline to approximately $\$105,000$ starting in Q1 2025, following the completion of amortization of interest expense debt at year-end 2024.

Here's a quick look at the key cost components we have the latest figures for:

Cost Component	Latest Reported Period Figure	Context/Projection
Gross Profit Margin (Apparel/Inventory)	$42.7\%$	Q3 2025
Sales & Marketing Expenses	$\$1.6$ million	Q3 2025
G&A Overhead (Sequential Reduction)	$>\$500,000$	Q3 2024 vs Q2 2024 sequential reduction
G&A Overhead (Latest Reported)	$\$2.2$ million	Q3 2025
Interest Expense (FY Projection)	$\$420,000$	Projected for FY 2025
Interest Expense (Quarterly Projection)	$\$105,000$	Projected quarterly starting Q1 2025

The shift in the cost structure is clearly visible when you look at the quarterly comparison, especially the marketing spend ramping up while G&A is being actively managed down from prior year levels. The real game-changer, though, is the interest expense falling off a cliff, which directly boosts the bottom line without needing a single extra sale.

• Fixed costs in gross margins include warehouse rent and associated labor.
• Q3 2024 Sales & Marketing expense ratio was $26.9\%$.
• The company anticipates an earnings benefit of over $\$4.5$ million in 2025 from concluding amortized non-cash expenses and interest savings.

Finance: draft 13-week cash view by Friday.

Digital Brands Group, Inc. (DBGI) - Canvas Business Model: Revenue Streams

You're looking at the core ways Digital Brands Group, Inc. (DBGI) is bringing in cash as of late 2025. The revenue picture is clearly bifurcated right now, with legacy channels facing headwinds while newer, high-growth areas start to contribute.

Total net revenues for the third quarter ended September 30, 2025, landed at $1.65 million, a notable drop from the $2.44 million reported in the same quarter last year. For the nine months ending September 30, 2025, net revenues totaled $5.8 million, down from $9.4 million in the prior year period. Still, the company secured significant non-operating capital through financing activities.

Here's a quick look at the key financial context around these revenue periods:

Metric	Q3 2025 Amount	Nine Months Ended Sept 30, 2025 Amount
Net Revenues	$1.65 million	$5.8 million
Gross Profit	$0.71 million	Not explicitly stated in the same context
Gross Margin	42.7%	40% (Nine-month figure)
Cash Provided by Financing Activities (9 Months)	Not specified for Q3 only	$23.4 million

The revenue streams are driven by several distinct activities:

• Direct-to-Consumer (DTC) sales from brand websites, supported by expertise in e-commerce and digital marketing to scale online sales channels.
• Wholesale revenue from legacy brands, which saw softer performance in Q3 2025, but management noted higher bookings for Spring 2026 wholesale orders compared to the same period last year.
• Collegiate apparel sales through the AVO brand and university partnerships, which management cited as experiencing significant month-over-month revenue growth in Q3 2025, currently active with one university.
• Proceeds from equity and warrant exercises, which provided a material cash boost; the company successfully raised $17.76 million through private offerings and warrant exercises during the period ending September 30, 2025.

To be fair, the Q3 results were overshadowed by the legacy wholesale segment, but the $17.76 million in financing proceeds, which included a specific $7.8 million warrant exercise, significantly bolstered the cash position to $6.7 million in cash as of September 30, 2025, providing runway for operations.