Digital Brands Group, Inc.
Q2 2021 Earnings Call Transcript

Published: 13 Aug 2021

[Operator:]

Greetings, and welcome to the Digital Brands Group Second Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Hil Davis. Thank you, Hil. You may begin.

[Hil Davis:]

Great, thank you. Good day, and welcome to the Digital Brands Group second quarter fiscal year 2021 earnings conference call and webcast. All participations will be in a listen only mode. We will have a question-and-answer session at the end of the script. This earnings call may contain forward-looking statements as defined in Section 27A of the Securities Act of 1933 as amended, including statements regarding among other things, the company's business strategy and growth strategy. Expressions which identify as forward-looking statements speak only as of the date the statement is made. These forward-looking statements are based largely on our company's expectations, and are subject to a number of risks and uncertainties, some of which cannot be predicted or quantified and are beyond our control. Future developments and actual results could differ materially than those set forth and contemplated by or underlining the forward-looking statements. In light of these risks and uncertainties there can be no assurances that the forward-looking information will prove to be accurate. Accompany today's call will be just a Q&A, and the company will be hosting that at the end of this and the conclusion of prepared remarks. Should you have any questions, and you'd like to submit, please email us or chime in. On the conference call, Hil Davis, the Chief Executive Officer; and Laura Dowling, our CMO; our CFO, Reid Yeoman was not able to join this call due to some health issues. I'm going to go ahead and read into the second quarter results. So I want to start with, our second quarter of 2021 reflects a meaningful improvement in our business results from our first quarter results as we were able to benefit from the cash inflows from our IPO in the middle of May. These improving business trends have continued into the third quarter, and we expect them to improve throughout the third and fourth quarters of 2021 now that we have sufficient cash and inventory to support expected levels of operations. I want to repeat that, our improving business trends have continued into the third quarter and we expect them only to improve throughout the third quarter and into the fourth quarter. As we stated in our first quarter 2021 earnings release, a combination of factors negatively impacted our pre IPO results, which included

[Operator:]

[Hil Davis:]

Thank you very much. And just to, again, continue to talk about this, we're excited about where we are and where we're going. Bailey continues to trend at pre pandemic levels even as we look into January and February wholesale bookings. DSTLD has confirmed that the products for fall will be landing in September and we are very excited about what that could bring. Harper & Jones will be fully integrated in our Q3 results, and we also have several drivers there including our Ready-to-Wear program, which we did not have last year. And then finally, we're going to be able to drive meaningful marketing dollars, which we have not had in over a year. All those continue to make us excited about what we've seen, and the trends that we're experiencing currently both in Q2 and also into Q3 so far. And also, we're excited about our acquisition strategy, and getting through the PCAOB GAAP audits and continuing to add accretive acquisitions to the company for our S-1. With that, thank you all very much, and have a great day.

[Operator:]

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation. Have a wonderful day.