Digital Brands Group (NASDAQ:DBGI) stock is rocketing higher on Tuesday thanks to a guidance update from the lifestyle retail company.
Let’s jump into the details from the update sending DBGI stock higher below!
- Starting off, the company is expecting revenue for fiscal 2022 to range from $37.5 million to $42.5 million.
- If that holds true, it would represent a 350% increase in revenue compared to the company’s 2021 guidance.
- Digital Brands Group expects a revenue increase due to a few factors.
- That includes an increase in digital marketing advertising, a full year of selling on Amazon (NASDAQ:AMZN), a full inventory stock for the year, a new product expansion, new showrooms opening, as well as the addition of wholesale revenue.
- The company also points out that it expects a positive EBITDA for 2022.
- Digital Brands Group is also expecting to grow its business through company acquisitions.
Hil Davis, CEO of Digital Brands Group, said the following about the news boosting DBGI stock higher today.
‘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 2022. 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.”
It’s worth pointing out that DBGI is seeing heavy trading on today’s news. As of this writing, more than 51 million shares of the stock have changed hands. That’s a major jump over its daily average trading price of 2.6 million shares.
DBGI stock was up 43.2% as of Tuesday morning.
There’s more stock market news below!
We’ve got all the latest stock coverage for traders today. Among it is what’s happening with Hyzon Motors (NASDAQ:HYZN), Farmmi, Inc. (NASDAQ:FAMI), and Ford (NYSE:F). You can get all those details at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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