On March 11, 2022, shares of Digital Brands Group Inc. (DBGI) went down by 7.47% in the after-hours while it gained 22.54% during the regular session. Thus, the stock fell under corrections in the after-hours to shed its gains.
In the regular trading session, DBGI was trending actively at an above-average volume of 1.69 million shares. At the close of the session, the stock had a value of $1.74 with a gain of $0.32 or 22.54%. Consequent to the gain, the stock plunged down to $1.61 in the after-hours as it succumbed to corrections. Hence, at a volume of 80.55K shares, DBGI stock declined by $0.13 or 7.47% in the after-hours on Friday.
The direct-to-consumers and wholesale apparel provider, Digital Brands Group Inc. has a market capitalization of $22.27 million.
DBGI’s Recent Movements & Causes
On March 07, the company reported a record increase in its e-commerce revenues for January and February. Consequently, the stock surged up in the regular session on March 07. But the huge gain called for profit-booking and corrections which led the stock on a downtrend till March 09. The stock resumed on a bullish course on March 10 as the company’s e-commerce revenues are expected to grow further. With a 22.54% gain on Friday, DBGI’s 5-day gains totaled 30.83%. Therefore, the gains once again called for corrections and so, the stock plunged due to corrections in the after hours.
Record E-commerce Revenues Growth
As reported on March 7, the company’s e-commerce revenues grew by a mammoth 776% YOY for January and February 2022. Moreover, the company’s wholesale channel also reported significant growth of over 200% YOY for the same months.
This news come at a time when even most of the apparel giants reported flat revenues or mild to negative growth. Additionally, multiple prominent apparel companies have provided a weak outlook portraying market pressures of inflation. However, amidst such a frenzy in the market, DBGI not only posted record growth but is set to continue growing. The company is expecting to further up the YOY growth as it continues to expand sales due to its acquisition strategy and digitally-focused sales model.
DBGI’s 2021 Revenue Update
On January 7, the company provided a 2021 net revenue update and reaffirmed its 2022 revenues and EBITDA guidance. DBGI expects net revenue of $4 million for Q4 2021 and $7.6 million for fiscal 2021. While the Q4 revenue had an impact from supply chain delays, fiscal 2021 revenue portrays an increase of 44% YOY.
