Digital Brands Group Q2 FY26 net loss widens to $9 million; revenue drops 46.33% to $1.21 million
DBGI•Quarterly results weaken on lower wholesale shipments
Digital Brands Group posted a net loss of $8.98 million for the quarter ended June 30, 2026, widening from $2.12 million.
Net revenues fell 46.33% to $1.21 million, driven primarily by lower wholesale shipments across the company’s brands.
Gross margin narrowed 5 percentage points to 27%, reflecting lower revenue against fixed production costs and a higher mix of off-price wholesale shipments.
Expenses rise as company issues third-quarter guidance
Sales and marketing expense climbed to $5.28 million, including $2.8 million of amortization of prepaid marketing tied to collegiate and NIL agreements.
The company issued third-quarter 2026 net revenues guidance of $8.5 million to $11 million, citing expected collegiate and wholesale benefits.
