Benzinga | Jul 8, 2021 01:44PM EDT

Digital Brands Shares Jump After A 100% Hike In Revenue Estimate

* Digital Brands Group Inc (NASDAQ:DBGI) has estimated a 100% jump in its second quarter FY21 revenue on a sequential basis. It reported $0.41 million sales for the first quarter of FY21.

* This estimate includes six and a half weeks of revenue contribution from Harper & Jones, a custom and made-to-measure suiting and sportswear company acquired in May 2021.

* The company did not include operating of Harper and Jones in its Q1 earnings, as it was not acquired at that point. Harper and Jones had $0.90 million revenue in the first quarter.

* Digital Brands went public in May and its cash and equivalents totaled $0.71 million as of March 31, 2021.

* "As we stated, we expected to see improved operating results in the second quarter and expect to see significantly improved operating results in the third and fourth quarters of 2021 now that we have sufficient cash and inventory to support expected levels of operations," said CEO Hil Davis.

* The company will be reporting its full second quarter 2021 results on or before August 16, 2021.

* Price action: DBGI shares are trading higher by 17.3% at $6.17 on the last check Thursday.