Overview

• Digital Brands Q3 revenue declines to $1.7 mln, primarily due to softer wholesale revenue

• Net loss for Q3 remains at $3.5 mln, consistent with last year

• Company sees significant growth in AVO collegiate brand, expects further expansion

Outlook

• Company expects higher wholesale bookings for Spring 2026 compared to Spring 2025

• Company sees significant growth opportunity in collegiate brand expansion

• Company plans to expand AVO collegiate brand to more universities

Result Drivers

• WHOLESALE BOOKINGS - Co reports higher bookings for Spring 2026 wholesale orders compared to Spring 2025, driven by a change in head designer

• COLLEGIATE GROWTH - Significant revenue growth in AVO collegiate brand, driven by expansion at one university, with plans to add more

• GROSS MARGIN DECLINE - Decline in gross profit margins attributed to fixed costs including warehouse rent and labor expenses

Key Details

Press Release: ID:nGNX5xSd40

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)