Digital Brands Stock Plunges After Gloomy Q3 Outlook

Digital Brands Group DBGI reported second-quarter FY21 sales growth of 50.6% year-on-year, to $1 million.
Gross profit was $0.39 million with a profit margin of 39.3%.
Operating expenses increased 590% Y/Y to $11.2 million. The operating loss expanded to $(10.8) million.
The company held $4.1 million in cash and equivalents as of June 30, 2021.
Loss per share was $(1.97). Net loss widened to $(10.7) million.
"We are experiencing improving results as we move past our IPO date in May as we are able to use the IPO cash proceeds to order inventory, spend on marketing and invest into our brands," said CFO Reid Yeoman.
Outlook: Digital Brands expects Q3 operating results to experience similar, although less adverse impacts by the factors which impacted Q1 and Q2 operating results.
Price Action: DBGI shares traded lower by 23.3% at $3.68 on the last check Thursday.

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