Digital Brands Group, Inc. DBGI

Competitive advantage analysis · consumer-cyclical

Corporate Default
Overall moat score
9/100
Weak

About Digital Brands Group, Inc.

Digital Brands Group, Inc. engages in the provision of various apparel products through direct-to-consumer and wholesale distribution. The company offers women's clothing, including dresses, tops, jumpsuits, sets, shirts, sweaters, skirts, shorts, athleisure bottoms, and other accessory products, as well as t-shirts, jackets and rompers. It sells its products under the Bailey 44, Stateside, DSTLD, Sundry, and AVO Studios brand names. … Full DBGI analysis →

Competitive advantage assessment

Key strengths

  • Operating Leverage in Effect Operating leverage is evident (score 0.97), with margins expanding over time.

Key risks

  • Commodity Pressure / Weak Differentiation Gross margin at 3.0th percentile with high volatility suggests weak pricing power or commoditized products.
  • ROIC Below WACC or Peers ROIC at 3.4th percentile suggests inefficient capital deployment.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Weak
2

Where DBGI ranks in Apparel Retail

Digital Brands Group, Inc. ranks #34 of 34 scored companies in Apparel Retail by moat score — the top 100%. The widest moat in the group is lululemon athletica inc. (LULU) at 83/100.

Moat scores for companies ranked near DBGI in Apparel Retail
# Company Moat score Rating
26 Cato Corporation (The) CATO 34/100 Developing
27 Digital Brands Group, Inc. Warrant DBGIW 32/100 Developing
28 Rent the Runway, Inc. RENT 28/100 Developing
29 a.k.a. Brands Holding Corp. AKA 26/100 Developing
30 Destination XL Group, Inc. DXLG 25/100 Weak
31 Tilly's, Inc. TLYS 21/100 Weak
32 Lulu's Fashion Lounge Holdings, LVLU 16/100 Weak
33 Allbirds, Inc. BIRD 13/100 Weak
34 Digital Brands Group, Inc. DBGI 9/100 Weak

See every General Corporate company ranked by moat score →

How DBGI scores on the Corporate Default defenses

Pricing Power

Score 2 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 3 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 3 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 2 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 8 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 41 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding DBGI's moat

What is Digital Brands Group, Inc.'s moat score?

Digital Brands Group, Inc. (DBGI) scores 9 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as weak. It ranks #34 of 34 scored companies in Apparel Retail, the top 100%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 33 companies in Apparel Retail. Its strongest defense is Scale & Market Position (41/100) and its weakest is Capital Efficiency (2/100).

How does Digital Brands Group, Inc. compare with other Apparel Retail companies?

Digital Brands Group, Inc. ranks #34 of 34 scored companies in Apparel Retail by moat score. The widest moat in Apparel Retail is lululemon athletica inc. (LULU) at 83/100. The companies ranked closest are Allbirds, Inc. (BIRD) at 13 just above it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 33 companies in Apparel Retail. The defenses are then weighted to produce the overall score out of 100.

Why is Digital Brands Group, Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Digital Brands Group, Inc.?

The Corporate Default template measures 6 defenses, and DBGI scores: Pricing Power (2), Cost Advantage (3), Customer Stickiness (3), Capital Efficiency (2), Resilience (8), Scale & Market Position (41). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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