Digital Brands nasdaq Dbgi Stock Rallies on Reaffirmed Fiscal Year 2024 Guidance

Digital Brands (NASDAQ: DBGI) Stock Rallies on Reaffirmed Fiscal Year 2024 Guidance

Digital Brands Group (NASDAQ: DBGI) stock shot up on Tuesday after the company reaffirmed its guidance for the fiscal year 2024.

Digital Brands Group (DBGI) has officially lodged a Form 8-K with the Securities and Exchange Commission (SEC) on Monday.

This filing sheds light on a recent press release by the company, wherein DBGI’s management reiterated its revenue outlook for the ongoing year. Anticipating revenues ranging between $27 million and $30 million, DBGI also forecasts EBITDA to fall within the $1.5 million to $2.0 million range, with internal free cash flow expected to reach $6.0 million to $7.0 million in 2024.

The Austin-based firm has also pledged to refrain from conducting equity offerings throughout 2024.

Digital Brands has reached a significant revenue scale following its acquisition of Sundry, concurrently with a further reduction of operating costs by $1 million for 2024.

Hil Davis, the Chief Executive Officer of Digital Brands Group, expressed enthusiasm, saying,

“We are excited to showcase our commitment to shareholder growth in 2024, which includes (1) the commitment to no equity offerings for 2024 and (2) our continued review of strategic alternatives, especially given our assets and operating forecast relative to our public market value. We have several options to maximize shareholder value, which we will pursue if this dislocation remains.”

Digital Brands (NASDAQ: DBGI) Stock Price Action

DBGI stock skyrocketed 139.09% to close at $6.85 on Tuesday. The traders had exchanged hands with 69,502,646 (69.50 million) shares compared to the average daily trading volume of 125.15K.