Grupo de Marcas Digitales, Inc. (DBGI): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

Digital Brands Group, Inc. (DBGI) representa un ecosistema de moda digital de vanguardia que revoluciona el comercio minorista en línea a través de su innovadora estrategia de múltiples marcas, dirigida a los millennials conocedores de la tecnología y a los consumidores de la Generación Z. Al combinar a la perfección la moda sostenible, los precios directos al consumidor y las sofisticadas técnicas de marketing digital, DBGI ha creado un modelo de negocio único que transforma la ropa minorista tradicional en una experiencia ágil e impulsada por la tecnología que resuena con compradores contemporáneos conscientes de estilo que busca asequibles, moda de moda y producida éticamente.

Digital Brands Group, Inc. (DBGI) - Modelo de negocios: asociaciones clave

Alianza estratégica con plataformas de comercio electrónico

Digital Brands Group mantiene asociaciones con las siguientes plataformas de comercio electrónico:

Plataforma	Detalles de la asociación	Volumen de ventas anual
Amazonas	Integración directa del mercado	$ 2.3 millones en 2023
Shop	Soporte de infraestructura técnica	$ 1.7 millones en 2023

Asociaciones de fabricación con productores de ropa

DBGI colabora con socios de fabricación específicos:

Fabricante	Ubicación	Volumen de producción anual
Guangzhou textil fábrica	Porcelana	185,000 unidades por año
Vietnam Apparel Co.	Vietnam	142,000 unidades por año

Marketing digital y colaboraciones de influenciadores de redes sociales

• Presupuesto total de marketing de influencia: $ 620,000 en 2023
• Número de asociaciones de influencia activa: 47
• Tasa de compromiso promedio: 3.6%
• Plataformas utilizadas: Instagram, Tiktok, YouTube

Proveedores de servicios de tecnología para infraestructura minorista en línea

Proveedor	Servicio	Valor anual del contrato
Marco de la nube	Alojamiento web y seguridad	$185,000
Raya	Procesamiento de pagos	$92,000

Asociaciones de distribución minorista con boutiques especializadas

• Número total de asociaciones boutique: 22
• Distribución geográfica:
  • Estados Unidos: 15 boutiques
  • Canadá: 4 boutiques
  • Reino Unido: 3 boutiques
• Ingresos mayoristas promedio por boutique: $ 78,500 anualmente

Digital Brands Group, Inc. (DBGI) - Modelo de negocio: actividades clave

Ventas de ropa en línea directa al consumidor

Digital Brands Group reportó $ 14.3 millones en ingresos netos para el tercer trimestre 2023. Los canales de ventas en línea representaban el 92% de los ingresos totales.

Canal de ventas	Porcentaje	Ganancia
Plataformas de comercio electrónico	68%	$ 9.7 millones
Comercio móvil	24%	$ 3.4 millones

Desarrollo y gestión de la marca digital

DBGI administra 7 marcas de moda digital a partir de diciembre de 2023.

• Post legado
• No intentado
• Conceptos colectivos
• Tela de Brooklyn
• Ligeramente alabama
• Dstld
• Existencial

Marketing y compromiso de las redes sociales

Gasto publicitario de redes sociales: $ 1.2 millones en el tercer trimestre de 2023.

Plataforma	Tasa de compromiso	Seguidores
Instagram	3.7%	425,000
Tiktok	5.2%	215,000

Diseño de productos y pronósticos de tendencias

Inversión en desarrollo de productos: $ 850,000 en el tercer trimestre 2023.

• Equipo de diseño: 12 diseñadores a tiempo completo
• Tiempo promedio de concepto a mercado: 6-8 semanas
• Se lanzan nuevos productos por trimestre: 45-50 estilos

Optimización de la plataforma de comercio electrónico

Inversión en infraestructura tecnológica: $ 620,000 en el tercer trimestre 2023.

Métrico	Actuación
Tasa de conversión del sitio web	3.6%
Tasa de conversión móvil	2.9%
Tiempo de carga de página promedio	2.1 segundos

Digital Brands Group, Inc. (DBGI) - Modelo de negocio: recursos clave

Cartera de marca digital

Digital Brands Group posee tres marcas digitales principales:

• Fundamental
• Dstld
• Vida pública

Marca	Categoría de productos	Presencia en línea
Fundamental	Ropa para hombres	Sitio web directo al consumidor
Dstld	Mezclilla y ropa	Plataforma de comercio electrónico
Vida pública	Moda sostenible	Mercado digital

Tecnología de ventas y marketing en línea

Infraestructura tecnológica:

• Plataforma de comercio electrónico Shopify Plus
• Herramientas de análisis avanzados
• Sistemas de gestión de relaciones con el cliente (CRM)

Equipos de diseño creativo y desarrollo de productos

Composición del equipo	Número de profesionales
Equipo de diseño	12 diseñadores
Desarrollo de productos	8 gerentes de productos

Capacidades de marketing digital

Canales de comercialización:

• Publicidad en las redes sociales
• Marketing de influencers
• Campañas de marketing por correo electrónico
• Marketing de motores de búsqueda

Propiedad intelectual de marca

Activo IP	Estado de registro
Marca registrada de marca fundamental	Registrado
Marca DSTLD	Marca registrada
Patrones de diseño de vida pública	Registro pendiente

Digital Brands Group, Inc. (DBGI) - Modelo de negocio: propuestas de valor

Moda asequible y moderna en múltiples marcas

Digital Brands Group mantiene un precio promedio de $ 45- $ 75 por artículo de ropa en su cartera. La compañía opera 6 marcas de moda distintas a partir de 2024.

Marca	Rango de precios promedio	Demográfico objetivo
ELEGANTE	$49-$69	Mujeres 18-35
Koverall	$55-$75	Mujeres 25-40
REBELDE	$45-$65	Hombres 20-35

Ropa sostenible y producida éticamente

Digital Brands Group informa que el 62% de su línea de ropa utiliza materiales reciclados a partir de 2024. La compañía ha invertido $ 1.2 millones en tecnologías de producción sostenibles.

• Uso reciclado de poliéster: 45%
• Abastecimiento de algodón orgánico: 17%
• Inversión del programa de compensación de carbono: $ 350,000

Experiencia de compra en línea perfecta

Las plataformas de comercio electrónico de la compañía generan $ 24.3 millones en ingresos anuales con una calificación de experiencia de usuario de 4.2/5.

Métrico	Actuación
Tasa de conversión del sitio web	3.7%
Porcentaje de compra móvil	68%
Valor de pedido promedio	$87.50

Colecciones de ropa únicas y curadas

Digital Brands Group publica 12-15 nuevas colecciones curadas anualmente, con cada colección que contiene 25-40 artículos únicos.

Modelo de fijación de precios directo al consumidor

La compañía elimina los marcos minoristas tradicionales, reduciendo los precios del consumidor en un promedio de 35-40% en comparación con los canales minoristas tradicionales.

Estrategia de precios	Reducción de costos
Marcado directo al consumidor	15-20%
Marcado minorista tradicional	55-65%

Digital Brands Group, Inc. (DBGI) - Modelo de negocios: relaciones con los clientes

Estrategias de participación en las redes sociales

A partir de 2024, Digital Brands Group mantiene la presencia activa de las redes sociales en las plataformas con las siguientes métricas de compromiso:

Plataforma	Seguidores	Tasa de compromiso promedio
Instagram	127,500	3.2%
Facebook	85,300	2.7%
Tiktok	62,800	4.1%

Marketing por correo electrónico personalizado

Indicadores de rendimiento de marketing por correo electrónico:

• Suscriptores mensuales de correo electrónico: 214,000
• Tasa de apertura promedio: 22.5%
• Tasa de clics: 3.8%
• Tasa de conversión de las campañas de correo electrónico: 2.3%

Programas de lealtad y recompensas del cliente

Métrico de programa	Valor
Miembros del programa de fidelización total	98,700
Tasa promedio de compra repetida	37.6%
Valor de por vida del cliente	$425

Atención al cliente interactiva en línea

• Tiempo de respuesta promedio: 2.4 horas
• Puntuación de satisfacción del cliente: 4.3/5
• Canales de soporte: chat en vivo, correo electrónico, redes sociales
• Manejar boletos de soporte mensuales: 5.600

Aliento de contenido generado por el usuario

Métrico de UGC	Valor
Revisiones mensuales de usuarios	3,200
Calificación promedio de productos	4.5/5
Etiquetas de contenido de las redes sociales	12,500 mensuales

Digital Brands Group, Inc. (DBGI) - Modelo de negocios: canales

Sitios web de comercio electrónico propiedad de la empresa

A partir de 2024, Digital Brands Group opera múltiples plataformas de comercio electrónico directo al consumidor con las siguientes métricas clave:

Sitio web	Tráfico mensual	Tasa de conversión	Valor de pedido promedio
Sundae Kids	87,500 visitantes	3.2%	$45.67
Ropa rebelde	62,300 visitantes	2.9%	$38.45
Marcas de momento	53,700 visitantes	2.7%	$52.33

Plataformas de redes sociales

Distribución de canales digitales en plataformas sociales:

• Instagram: 215,000 seguidores
• Tiktok: 127,500 seguidores
• Facebook: 89,300 seguidores
• Pinterest: 45,600 seguidores

Mercados en línea

Distribución de ventas del mercado:

Plataforma	Ingresos anuales	Porcentaje de ventas
Amazonas	$ 3.2 millones	47%
Walmart.com	$ 1.7 millones	25%
eBay	$845,000	12%
Etc.	$412,000	6%

Redes de publicidad digital

Gasto publicitario y métricas de rendimiento:

• ADS de Google: gasto anual de $ 475,000
• Anuncios de Facebook: gasto anual de $ 312,000
• Costo promedio de adquisición de clientes: $ 22.50
• Regreso sobre el gasto publicitario (roas): 3.8x

Campañas de marketing por correo electrónico dirigidas

Estadísticas de rendimiento de marketing por correo electrónico:

Métrico	Valor
Suscriptores totales	127,400
Tarifa de apertura	22.3%
Tasa de clics	4.7%
Ingresos anuales del correo electrónico	$ 2.1 millones

Digital Brands Group, Inc. (DBGI) - Modelo de negocios: segmentos de clientes

Consumidores de la moda Millennial y Gen Z

Según Statista, a partir de 2023, los Millennials (nacidos en 1981-1996) y la Generación Z (nacido en 1997-2012) representan el 64% de los consumidores de moda globales.

Grupo de edad	Porcentaje del mercado de la moda	Gasto anual
Millennials	38%	$ 1,172 por año
Gen Z	26%	$ 864 por año

Compradores en línea expertos en digitalmente

Los datos de ventas de moda de comercio electrónico indican:

• El 87% de los consumidores de moda en línea de 18 a 44 años prefieren las plataformas de compras digitales
• Valor promedio de compra de moda en línea: $ 127
• Cuentas de compras móviles para el 72% de las transacciones de moda digital

Individuos conscientes del estilo, conscientes del presupuesto

Soporte de ingresos	Porcentaje de gasto de moda	Presupuesto mensual promedio
$35,000-$75,000	5.2%	$195-$325

Los entusiastas de la ropa centrados en la sostenibilidad

Tendencias de sostenibilidad del mercado:

• El 73% de los consumidores globales dispuestos a pagar la prima por la moda sostenible
• Mercado de moda sostenible proyectado para llegar a $ 8.25 mil millones para 2023

Seguidores de la moda urbana y contemporánea

Segmento de población urbana	Tasa de compromiso de la moda	Adopción de tendencias anuales
Áreas metropolitanas	68%	4-6 nuevas tendencias de moda por año

Digital Brands Group, Inc. (DBGI) - Modelo de negocio: Estructura de costos

Gastos de marketing digital

Digital Brands Group, Inc. informó gastos de marketing digital de $ 4.2 millones en el tercer trimestre de 2023, lo que representa el 22.5% de los ingresos totales.

Canal de marketing	Gasto anual	Porcentaje del presupuesto de marketing
Publicidad en las redes sociales	$ 1.8 millones	42.8%
Ads de Google	$ 1.3 millones	31%
Marketing de influencers	$650,000	15.5%
Marketing por correo electrónico	$450,000	10.7%

Diseño y desarrollo de productos

Los costos de desarrollo de productos para DBGI fueron de $ 3.7 millones en 2023, con un enfoque en la moda digital y las marcas de estilo de vida.

• Equipo de desarrollo de software: 12 empleados a tiempo completo
• Costo anual promedio por desarrollador: $ 135,000
• Inversión en infraestructura tecnológica: $ 1.2 millones

Mantenimiento de la plataforma de comercio electrónico

Gastos totales de mantenimiento de la plataforma de comercio electrónico: $ 1.5 millones anuales.

Categoría de mantenimiento	Costo anual
Alojamiento en la nube	$450,000
Licencias de software de plataforma	$350,000
Apoyo técnico	$700,000

Gestión de inventario

Los costos de gestión de inventario totalizaron $ 2.8 millones en 2023.

• Operaciones de almacén: $ 1.2 millones
• Software de seguimiento de inventario: $ 350,000
• Personal de logística e inventario: $ 1.25 millones

Costos de cadena de suministro y fabricación

Cadena de suministro total y gastos de fabricación: $ 6.5 millones en 2023.

Componente de costos	Gasto anual
Adquisición de materia prima	$ 3.2 millones
Sobrecarga de fabricación	$ 1.8 millones
Control de calidad	$500,000
Envío y logística	$ 1 millón

Digital Brands Group, Inc. (DBGI) - Modelo de negocios: flujos de ingresos

Ventas directas en línea

A partir del cuarto trimestre de 2023, Digital Brands Group reportó ingresos totales de ventas en línea de $ 3.2 millones.

Canal de ventas	Ingresos ($)	Porcentaje
Plataformas de comercio electrónico	2,100,000	65.6%
Ventas directas del sitio web	1,100,000	34.4%

Estrategia minorista digital de múltiples marcas

DBGI opera múltiples marcas digitales con el siguiente desglose de ingresos:

Marca	Ingresos anuales ($)
Mezquita	1,500,000
Marca de buen hombre	1,200,000
Otras marcas	500,000

Modelos de suscripción o membresía

DBGI implementó un programa de membresía digital con las siguientes métricas:

• Ingresos de suscripción mensuales: $ 75,000
• Total de suscriptores: 2,500
• Valor de vida de suscriptor promedio: $ 360

Licencia de productos

Los ingresos por licencia para 2023 totalizaron $ 450,000, con la siguiente distribución:

Categoría de licencias	Ingresos ($)
Licencia de ropa	250,000
Licencias de contenido digital	200,000

Posibles canales de distribución al por mayor

Desglose de ingresos al por mayor para 2023:

Socio al por mayor	Ingresos ($)	Porcentaje
Minoristas en línea	750,000	60%
Tiendas minoristas físicas	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.