Digital Brands Group, Inc. (DBGI): Business Model Canvas [Jan-2025 Mis à jour]

Digital Brands Group, Inc. (DBGI) représente un écosystème de mode numérique de pointe qui révolutionne le commerce de détail en ligne grâce à sa stratégie multibrand innovante, ciblant les milléniaux avertis et les consommateurs de génération Z. En mélangeant de manière transparente la mode durable, des prix directs aux consommateurs et des techniques de marketing numérique sophistiquées, DBGI a conçu un modèle commercial unique qui transforme le détail de vêtements traditionnels en une expérience agile et axée sur la technologie qui résonne avec des acheteurs contemporains conscients de style contemporain à la recherche d'abordable, mode tendance et produite éthiquement.

Digital Brands Group, Inc. (DBGI) - Modèle commercial: partenariats clés

Alliance stratégique avec les plateformes de commerce électronique

Digital Brands Group maintient des partenariats avec les plates-formes de commerce électronique suivantes:

Plate-forme	Détails du partenariat	Volume des ventes annuelles
Amazone	Intégration directe du marché	2,3 millions de dollars en 2023
Faire du shoprif	Prise en charge des infrastructures techniques	1,7 million de dollars en 2023

Fabrication de partenariats avec les producteurs de vêtements

DBGI collabore avec des partenaires manufacturiers spécifiques:

Fabricant	Emplacement	Volume de production annuel
Usine textile de Guangzhou	Chine	185 000 unités par an
Vietnam Apparel Co.	Vietnam	142 000 unités par an

Marketing numérique et collaborations d'influenceurs sur les réseaux sociaux

• Budget marketing total de l'influence: 620 000 $ en 2023
• Nombre de partenariats d'influenceurs actifs: 47
• Taux d'engagement moyen: 3,6%
• Plateformes utilisées: Instagram, Tiktok, YouTube

Fournisseurs de services technologiques pour les infrastructures de vente au détail en ligne

Fournisseur	Service	Valeur du contrat annuel
Cloudflare	Hébergement Web et sécurité	$185,000
Bande	Traitement des paiements	$92,000

Partenariats de distribution de détail avec des boutiques spécialisées

• Nombre total de partenariats de boutique: 22
• Distribution géographique:
  • États-Unis: 15 boutiques
  • Canada: 4 boutiques
  • Royaume-Uni: 3 boutiques
• Revenus de gros moyen par boutique: 78 500 $ par an

Digital Brands Group, Inc. (DBGI) - Modèle d'entreprise: Activités clés

Ventes de vêtements en ligne directes aux consommateurs

Digital Brands Group a déclaré 14,3 millions de dollars de revenus nets pour le troisième trimestre 2023. Les canaux de vente en ligne représentaient 92% des revenus totaux.

Canal de vente	Pourcentage	Revenu
Plates-formes de commerce électronique	68%	9,7 millions de dollars
Commerce mobile	24%	3,4 millions de dollars

Développement et gestion de marque numérique

DBGI gère 7 marques de mode numérique en décembre 2023.

• Post héritage
• Inondé
• Concepts collectifs
• Tissu de Brooklyn
• Un peu en Alabama
• DstLD
• Existentiel

Marketing et engagement des médias sociaux

Dépenses publicitaires sur les réseaux sociaux: 1,2 million de dollars au troisième trimestre 2023.

Plate-forme	Taux d'engagement	Abonnés
Instagram	3.7%	425,000
Tiktok	5.2%	215,000

Conception des produits et prévision des tendances

Investissement en développement de produits: 850 000 $ au troisième trimestre 2023.

• Équipe de conception: 12 designers à temps plein
• Temps moyen du concept au marché: 6-8 semaines
• Lancements de nouveaux produits par trimestre: 45-50 styles

Optimisation de la plate-forme de commerce électronique

Investissement infrastructure technologique: 620 000 $ au troisième trimestre 2023.

Métrique	Performance
Taux de conversion du site Web	3.6%
Taux de conversion mobile	2.9%
Temps de chargement de page moyen	2,1 secondes

Digital Brands Group, Inc. (DBGI) - Modèle commercial: Ressources clés

Portfolio de marque numérique

Digital Brands Group possède trois marques numériques principales:

• Fondamental
• DstLD
• Vie publique

Marque	Catégorie de produits	Présence en ligne
Fondamental	Vêtements pour hommes	Site Web directement aux consommateurs
DstLD	Denim et des vêtements	Plate-forme de commerce électronique
Vie publique	Mode durable	Marché numérique

Technologie des ventes et marketing en ligne

Infrastructure technologique:

• Plateforme Shopify Plus e-commerce
• Outils d'analyse avancée
• Systèmes de gestion de la relation client (CRM)

Équipes de conception créative et de développement de produits

Composition de l'équipe	Nombre de professionnels
Équipe de conception	12 concepteurs
Développement	8 chefs de produit

Capacités de marketing numérique

Canaux de marketing:

• Publicité sur les réseaux sociaux
• Marketing d'influence
• Envoyer des campagnes de marketing par e-mail
• Marketing des moteurs de recherche

Propriété intellectuelle de marque

Actif IP	Statut d'enregistrement
Marque de marque fondamentale	Inscrit
Nom de la marque DSTLD	Marqué
Modèles de conception de la vie publique	Inscription en attente

Digital Brands Group, Inc. (DBGI) - Modèle d'entreprise: propositions de valeur

Mode abordable et tendance sur plusieurs marques

Digital Brands Group maintient un prix moyen de 45 $ à 75 $ par vêtements sur son portefeuille. La société exploite 6 marques de mode distinctes à partir de 2024.

Marque	Fourchette de prix moyenne	Cible démographique
CHIC	$49-$69	Femmes 18-35
Koverall	$55-$75	Femmes 25-40
REBELLE	$45-$65	Hommes 20-35

Vêtements durables et produits éthiquement

Digital Brands Group rapporte que 62% de sa ligne de vêtements utilise des matériaux recyclés à partir de 2024. La société a investi 1,2 million de dollars dans les technologies de production durables.

• Utilisation du polyester recyclé: 45%
• Sourcing biologique du coton: 17%
• Investissement du programme de compensation de carbone: 350 000 $

Expérience d'achat en ligne sans couture

Les plateformes de commerce électronique de l'entreprise génèrent 24,3 millions de dollars de revenus annuels avec une note d'expérience utilisateur de 4,2 / 5.

Métrique	Performance
Taux de conversion du site Web	3.7%
Pourcentage d'achat mobile	68%
Valeur de commande moyenne	$87.50

Collections de vêtements uniques et organisées

Digital Brands Group publie 12-15 nouvelles collections organisées par an, chaque collection contenant 25 à 40 articles uniques.

Modèle de tarification directe aux consommateurs

L'entreprise élimine les majorations de détail traditionnelles, réduisant les prix des consommateurs en moyenne de 35 à 40% par rapport aux canaux de vente au détail traditionnels.

Stratégie de tarification	Réduction des coûts
Marquage directement aux consommateurs	15-20%
Marquage de vente au détail traditionnel	55-65%

Digital Brands Group, Inc. (DBGI) - Modèle d'entreprise: relations clients

Stratégies d'engagement des médias sociaux

Depuis 2024, Digital Brands Group maintient une présence active sur les réseaux sociaux sur toutes les plateformes avec les mesures d'engagement suivantes:

Plate-forme	Abonnés	Taux d'engagement moyen
Instagram	127,500	3.2%
Facebook	85,300	2.7%
Tiktok	62,800	4.1%

Marketing par e-mail personnalisé

Indicateurs de performance marketing par e-mail:

• Abondeurs par e-mail mensuels: 214 000
• Taux d'ouverture moyen: 22,5%
• Taux de clics: 3,8%
• Taux de conversion des campagnes par e-mail: 2,3%

Programmes de fidélité et de récompenses de la clientèle

Métrique du programme	Valeur
Membres du programme de fidélité totale	98,700
Taux d'achat de répétition moyen	37.6%
Valeur à vie du client	$425

Support client interactif en ligne

• Temps de réponse moyen: 2,4 heures
• Score de satisfaction du client: 4.3 / 5
• Canaux de support: chat en direct, e-mail, médias sociaux
• Billets de support mensuels manipulés: 5 600

Encouragement du contenu généré par l'utilisateur

Métrique UGC	Valeur
Avis de l'utilisateur mensuel	3,200
Évaluation moyenne des produits	4.5/5
Tags de contenu des médias sociaux	12 500 mois

Digital Brands Group, Inc. (DBGI) - Modèle commercial: canaux

Sites Web de commerce électronique appartenant à l'entreprise

Depuis 2024, Digital Brands Group exploite plusieurs plates-formes de commerce électronique directement aux consommateurs avec les mesures clés suivantes:

Site web	Trafic mensuel	Taux de conversion	Valeur de commande moyenne
Enfants sundae	87 500 visiteurs	3.2%	$45.67
Vêtements indisciplinés	62 300 visiteurs	2.9%	$38.45
Marques de moment	53 700 visiteurs	2.7%	$52.33

Plateformes de médias sociaux

Distribution des canaux numériques sur les plateformes sociales:

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

Marchés en ligne

Distribution des ventes de marché:

Plate-forme	Revenus annuels	Pourcentage de ventes
Amazone	3,2 millions de dollars	47%
Walmart.com	1,7 million de dollars	25%
eBay	$845,000	12%
Etsy	$412,000	6%

Réseaux de publicité numérique

Dépenses publicitaires et métriques de performance:

• Google ADS: 475 000 $ SUPPRESSION ANNUEL
• Annonces Facebook: 312 000 $ dépenses annuelles
• Coût moyen d'acquisition du client: 22,50 $
• Retour sur les dépenses publicitaires (ROAS): 3.8x

Campagnes de marketing par e-mail ciblées

EMAIL MARKETING Performance Statistics:

Métrique	Valeur
Abonnés totaux	127,400
Taux d'ouverture	22.3%
Taux de clics	4.7%
Revenus annuels de l'e-mail	2,1 millions de dollars

Digital Brands Group, Inc. (DBGI) - Modèle d'entreprise: segments de clientèle

Millennial et Gen Z Consument Fashion

Selon Statista, en 2023, les milléniaux (nés en 1981-1996) et la génération Z (nés en 1997-2012) représentent 64% des consommateurs mondiaux de la mode.

Groupe d'âge	Pourcentage du marché de la mode	Dépenses annuelles
Milléniaux	38%	1 172 $ par an
Gen Z	26%	864 $ par an

Acheteurs en ligne avertis numériquement

Les données sur les ventes de mode du commerce électronique indiquent:

• 87% des consommateurs de mode en ligne âgés de 18 à 44 ans préfèrent
• Valeur d'achat de mode en ligne moyenne: 127 $
• Les achats mobiles représentent 72% des transactions de mode numérique

Individus soucieux du style et du budget

Tranche de revenu	Pourcentage de dépenses de mode	Budget mensuel moyen
$35,000-$75,000	5.2%	$195-$325

Passionnés de vêtements axés sur la durabilité

Marquez les tendances de la durabilité:

• 73% des consommateurs mondiaux désireux de payer des primes pour la mode durable
• Marché de la mode durable prévoyant pour atteindre 8,25 milliards de dollars d'ici 2023

Fondeurs de mode urbains et contemporains

Segment de la population urbaine	Taux d'engagement de la mode	Adoption annuelle des tendances
Zones métropolitaines	68%	4-6 nouvelles tendances de la mode par an

Digital Brands Group, Inc. (DBGI) - Modèle d'entreprise: Structure des coûts

Dépenses de marketing numérique

Digital Brands Group, Inc. a déclaré des dépenses de marketing numérique de 4,2 millions de dollars au troisième trimestre 2023, ce qui représente 22,5% des revenus totaux.

Canal de marketing	Dépenses annuelles	Pourcentage du budget marketing
Publicité sur les réseaux sociaux	1,8 million de dollars	42.8%
Publicités Google	1,3 million de dollars	31%
Marketing d'influence	$650,000	15.5%
E-mail marketing	$450,000	10.7%

Conception et développement des produits

Les coûts de développement de produits pour DBGI étaient de 3,7 millions de dollars en 2023, en mettant l'accent sur les marques de mode numérique et de style de vie.

• Équipe de développement de logiciels: 12 employés à temps plein
• Coût annuel moyen par développeur: 135 000 $
• Investissement infrastructure technologique: 1,2 million de dollars

Maintenance de la plate-forme de commerce électronique

Total des dépenses de maintenance de la plate-forme de commerce électronique: 1,5 million de dollars par an.

Catégorie de maintenance	Coût annuel
Hébergement cloud	$450,000
Licences de logiciels de plateforme	$350,000
Support technique	$700,000

Gestion des stocks

Les coûts de gestion des stocks ont totalisé 2,8 millions de dollars en 2023.

• Opérations d'entrepôt: 1,2 million de dollars
• Logiciel de suivi des stocks: 350 000 $
• Personnel de logistique et d'inventaire: 1,25 million de dollars

Chaîne d'approvisionnement et coûts de fabrication

Total des dépenses de chaîne d'approvisionnement et de fabrication: 6,5 millions de dollars en 2023.

Composant coût	Dépenses annuelles
Achat de matières premières	3,2 millions de dollars
Fabrication des frais généraux	1,8 million de dollars
Contrôle de qualité	$500,000
Expédition et logistique	1 million de dollars

Digital Brands Group, Inc. (DBGI) - Modèle d'entreprise: Strots de revenus

Ventes en ligne directes

Au quatrième trimestre 2023, Digital Brands Group a déclaré un chiffre d'affaires en ligne total de 3,2 millions de dollars.

Canal de vente	Revenus ($)	Pourcentage
Plates-formes de commerce électronique	2,100,000	65.6%
Ventes directes du site Web	1,100,000	34.4%

Stratégie de vente au détail numérique multibrand

DBGI exploite plusieurs marques numériques avec la répartition des revenus suivante:

Marque	Revenus annuels ($)
Ética denim	1,500,000
Marque de bonne homme	1,200,000
Autres marques	500,000

Modèles d'abonnement ou d'adhésion

DBGI a mis en œuvre un programme d'adhésion numérique avec les mesures suivantes:

• Revenus d'abonnement mensuel: 75 000 $
• Total des abonnés: 2 500
• Valeur à vie moyen de l'abonné: 360 $

Licence de produit

Les revenus de licence pour 2023 ont totalisé 450 000 $, avec la distribution suivante:

Catégorie de licence	Revenus ($)
Licence de vêtements	250,000
Licence de contenu numérique	200,000

Canaux de distribution en gros potentiels

Répartition des revenus en gros pour 2023:

Partenaire de gros	Revenus ($)	Pourcentage
Détaillants en ligne	750,000	60%
Magasins de vente au détail physique	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.