Benzinga | Jun 28, 2021 12:32PM EDT

Digital Brands Stocks Falls After Q1 Loss Widens

* Digital Brands Group Inc (NASDAQ:DBGI) reported first-quarter FY21 revenue of $408 thousand, down 84% year-on-year.

* The decline in net sales was driven by COVID-19 delaying the start date of the new Bailey 44 designer until the fall of 2020 and limited inventory at DSTLD due to limited cash.

* Gross loss of $207.5 thousand widened $1.6 million Y/Y. The operational loss was $2.3 million, up 48.9% Y/Y.

* EPS was a loss of $4.55, up 58.5% Y/Y.

* Cash used in operating activities was $1.6 million.

* Digital's cash and equivalents totaled $711 thousand as of March 31, 2021.

* The company said the adverse impact would be lesser in the second quarter due to the Harper & Jones contribution, Bailey 44 wholesale shipments for May and June, and some inventory levels starting in late May for DSTLD. Q2 Bailey 44 fall 2021 wholesale bookings are in line with pre-pandemic revenue levels.

* Price action: DBGI shares are trading lower by 14.8% at $4.68 on the last check Monday.