By Sam Boughedda
Investing.com — Shares of Digital Brands Group Inc (NASDAQ:DBGI), the collection of luxury lifestyle, digital-first brands, fell over 14% Friday after the company updated the market on its fourth quarter and fiscal year 2021 revenue guidance.
Fourth quarter revenue is predicted to come in line with the company's previous forecast of around $4 million. However, Digital Brands said revenue in the quarter was slightly affected by global supply chain delays in the apparel industry.
"The delays were due to some of our products stuck in transport, which were limited to our Bailey 44 brand," the company said in its statement.
Meanwhile, DBGI's fiscal year 2021 net revenue is anticipated to increase 44%, to $7.6 million, versus $5.2 million a year ago. 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.
Focusing on 2022, the company reaffirmed its fiscal year revenue guidance of $37.5 million to $42.5 million, representing around a 350% increase over the previous year. Furthermore, it forecasts a positive earnings before interest, taxes, depreciation and amortization for 2022.
"Our 2022 revenue guidance reflects the power of our brand portfolio, especially as we are able to benefit from the full year revenue contribution from our acquisitions in 2021," stated Hil Davis, CEO of Digital Brands.
"This forecasted increase of 350% in our year over revenue growth does not reflect any potential additional acquisitions, nor does it reflect any meaningful benefit from our expected increase in marketing spend."