The board of Digital Brands Group is looking at strategic options for the company just two-and-a-half years after it went public.
The development comes after the owner of the denim-centric DSTLD brand reported a nearly 70 percent net revenue increase in the second quarter. In an Aug. 17 statement accompanying the earnings report, Digital Brands CEO Hil Davis shared plans to launch two additional revenue channels during the fall season, including a “multi-brand retail store.”
Now, the Austin, Texas-based company focused on premium lifestyle fashion brands is looking at ways to “options to maximize shareholder value.” It’s too soon to know how the strategic review will play out.
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Davis, who became CEO in March 2018, previously founded the menswear brand J. Hilburn where he spent six-and-a-half years as chief executive before leaving in September 2013. According to Davis’ LinkedIn profile, he built J. Hilburn—which he described as the largest custom men’s clothier in the world—from zero to $55 million in annual revenue before stepping away.
According to the Digital Brands website, DSTLD became the “first-ever” fashion brand to raise money through Reg A+ funding in 2016, which allows investments in startups and lets everyday people own stakes in eligible companies. DSTLD has raised more than $7.8 million through equity crowdfunding from over 4,600 investors.
Digital Brands also owns contemporary women’s brand Bailey 44, the “made-to-measure” men’s suiting and sportswear brand Harper & Jones, and the women’s brands Stateside and Sundry.
The company was founded as an e-commerce and direct-to-consumer retail model selling online and via wholesale accounts.
“Our purpose is to accelerate the growth of talented brands by offering specialized services and infrastructure that are crucial to the success of direct brands: Operations, marketing, technology, legal, and customer service,” it said.
