Sam Boughedda

Investing.com — Shares Digital Brands Group Inc (NASDAQ:) Friday’s drop in luxury-lifestyle, digital-first brands was more than 14% after the company provided updated market information on the fourth quarter and financial year 2021 revenues guidance.

The company expects fourth quarter revenues to be in line with its previous forecast of $4 million. Digital Brands however stated that the quarter’s revenue was somewhat affected by the global supply chain problems in the apparel industry. 

The company stated that delays occurred due to products getting stuck in transportation. However, they were not limited to Bailey 44 brands.

DBGI expects that DBGI will see a 44% increase in net revenue for fiscal 2021, from $5.2 million a previous year. However, the revenue figure does not include the entire net revenue from 2021 for Harper & Jones or Stateside, as the company acquired the brands during fiscal year 2021.

It reiterated its 2022 fiscal year revenue guidance, which was between $37.5 and $42.5 millions. This represents a 350% increase in revenues over last year. It also forecasts positive earnings before interest taxes, depreciation, and amortization in 2022.

Hil Davis, Digital Brands CEO, stated that “our 2022 revenue guidance is a reflection of the strength of our brand portfolio,” and added, “The full-year revenue contribution from our 2021 acquisitions in 2021 will be a significant contributor to our revenue,”

This forecasted rise of 350% over our revenue growth in the year does not reflect potential acquisitions nor any significant benefit from our anticipated increase in marketing spending.