Luxury lifestyle brand conglomerate the Digital Brands Group has recorded a net loss of $684,000 in the first quarter (Q1) of the fiscal year 2024 (FY24), a substantial decrease from the $6.1m loss reported in Q1 FY23.

The company’s net loss per diluted share for the quarter was $0.46, compared to a loss of $27.48 per diluted share in Q1 FY23.  

During the quarter ending 31 March 2024, Digital Brands Group reported net revenues of $3.6m, a decrease of $0.8m from the $4.4m achieved in the same period a year previously. 

The company attributed the decline in net revenues to the postponement of wholesale shipments which were delayed from the end of March to the first half of April. 

The company’s general and administrative (G&A) expenses saw a notable reduction, falling to $1m from $4.5m in Q1 FY23.  

Sales and marketing expenses decreased to $700,000, down from $1.0m in the same period of 2023. 

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Digital Brands Group’s gross profit for the quarter stood at $1.7m, declining from $2.0m in Q1 FY23.  

But the gross profit margin improved, rising to 48.1% from 45.5%.  

Net operating loss also improved, coming in at $225,000 compared to a loss of $3.7m in the previous year. 

Digital Brands Group CEO Hil Davis said: “Despite a timing shift in our wholesale shipments, which shifted revenue from the first quarter to the second quarter, we experienced significant operating expense leverage. We expect this operating leverage to continue throughout the year.  

“In fact, this operating leverage coupled with higher revenues will result in higher flow through to our operating and net income.”