Digital Brands Group Delivers 221% Revenue Growth While Cutting Marketing Spend by 78%; AVO Achieves 3.65x ROAS
AVO generated 221% year-over-year revenue growth from August 1 through September 11 while reducing digital marketing expenditures by 78%
Return on ad spend reached 3.65x as the collegiate athletic brand demonstrated improving customer-acquisition and marketing efficiency
Weekly net revenue among universities launched in 2026 increased 442% from Week 1 to Week 6
Completely redesigned e-commerce platform scheduled to launch in the first week of October, targeting improvements in conversion rates, average order value and customer engagement
Management is targeting 5x ROAS, which could provide a foundation for scaling digital advertising investment alongside revenue
AUSTIN, Texas / BUSINESS WIRE / September 24, 2026 / Digital Brands Group, Inc. (NASDAQ: DBGI) (“DBG” or the “Company”), a publicly traded company specializing in apparel and e-commerce, announced significant revenue growth and improved marketing efficiency across its collegiate licensing brand, AVO.
From August 1 through September 11, 2026, AVO generated a 221% year-over-year increase in revenue while reducing digital marketing expenditures by 78% compared with the same period in 2025. During the same period, AVO achieved a 3.65x return on ad spend (ROAS).
The combination indicates that AVO generated substantially more revenue while deploying considerably less digital marketing capital than during the comparable prior-year period.
AVO Performance at a Glance
Metric Performance Year-over-Year Revenue Growth +221% Digital Marketing Spend -78% YoY Return on Ad Spend 3.65x Weekly Net Revenue Growth +442% from Week 1 to Week 6 Management ROAS Target 5x New E-Commerce Platform First week of October 2026
221% Revenue Growth with 78% Less Marketing Spend
The standout element of AVO’s recent performance is the relationship between revenue growth and marketing expenditure.
During the August 1 through September 11 measurement period, revenue increased 221% year over year, even as digital marketing expenditures declined 78% compared with the same period in 2025.
AVO simultaneously produced a 3.65x ROAS, meaning the brand generated approximately $3.65 in revenue for every dollar of measured advertising spend during the period.
The results demonstrate substantially improved marketing efficiency, with revenue expanding without requiring a corresponding increase in customer-acquisition spending.
Weekly Net Revenue Climbs 442%
The Company also reported accelerating performance among universities added to the AVO platform during 2026.
For universities launched this year, weekly net revenue increased 442% from Week 1 to Week 6. Week 1 represented the week beginning August 1, while Week 6 represented the week beginning September 5.
Period Weekly Net Revenue Trend Week 1 — August 1 Baseline Week 6 — September 5 +442%
This growth provides another indicator of AVO’s ability to increase revenue from newly launched university programs as they progress beyond their initial launch periods.
Redesigned E-Commerce Platform Coming in October
Building on the recent performance, AVO plans to launch a completely redesigned e-commerce platform during the first week of October 2026.
The platform is being developed by newly appointed Digital Brands Group board member David Sosnowski, who previously served as growth architect at Vuori during a period in which the apparel company experienced a 2,400% revenue expansion.
DBG said the redesigned platform is intended to improve several key e-commerce performance metrics, including:
- Conversion rates
- Average order value
- Customer engagement
Improvement across these metrics could allow AVO to generate more revenue from its existing customer traffic while potentially improving the economics of additional marketing investment.
Management Targets 5x ROAS
Hil Davis, CEO of Digital Brands Group, highlighted the combination of revenue growth and reduced marketing expenditure:
“We are encouraged by the combination of strong revenue growth and substantially lower marketing expenditures,” Davis said.
According to Davis, AVO’s performance demonstrates increasing efficiency in how the brand is acquiring and monetizing customers. Management believes the October e-commerce redesign could further improve conversion and marketing efficiency.
The Company’s stated target is to achieve a 5x ROAS, compared with the 3.65x ROAS reported for the August 1 through September 11 period.
Reaching that target, according to management, would provide a foundation for scaling digital advertising investment alongside revenue.
Operating Leverage Through Marketing Efficiency
AVO’s recent performance demonstrates the potential to grow revenue without requiring a proportional increase in marketing expenditures.
The combination of higher revenue, lower customer-acquisition spending and improving ROAS could provide Digital Brands Group with greater flexibility to increase marketing investment as the business demonstrates additional operating leverage.
Marketing & Revenue Indicator Current Result Revenue Growth +221% YoY Marketing Spend Change -78% YoY Current ROAS 3.65x Target ROAS 5x Weekly Net Revenue Growth +442%
Rather than relying simply on higher advertising expenditure to drive sales, the reported results indicate that AVO has recently generated significantly higher revenue while using substantially less digital marketing spend.
October Platform Launch as the Next Operational Milestone
The upcoming October e-commerce platform launch represents the next major operational milestone for AVO.
Management expects the redesign to target improvements in conversion, average order value and customer engagement. If those metrics improve as intended, the Company believes it could further strengthen marketing efficiency and support increased advertising investment.
The platform launch follows a period in which AVO has already demonstrated strong revenue growth and increased efficiency, giving investors another measurable development to monitor as the Company moves into the fourth quarter of 2026.
Forward-Looking Statements
Certain statements included in this release are forward-looking statements within the meaning of the federal securities laws.
Forward-looking statements are based on Digital Brands Group’s current expectations and beliefs regarding future events and involve known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied.
Words such as “will,” “anticipate,” “estimate,” “expect,” “should,” “may,” and similar expressions, as well as references to future dates, may identify forward-looking statements, although the absence of such terminology does not mean a statement is not forward-looking.
Forward-looking statements include statements regarding DBG’s plans, objectives, projections, expectations, operations and financial performance, as well as assumptions underlying those expectations.
These statements are not promises or guarantees of future performance, and actual results could differ materially.
Potential risks and uncertainties include, among others:
- Consumer demand for apparel and accessories
- DBG’s ability to add and retain strategic partners and customers
- Disruptions to the Company’s distribution system
- The financial strength of customers
- Fluctuations in the price, availability and quality of raw materials and contracted products
- Disruption and volatility in global capital and credit markets
- Changing fashion trends and consumer preferences
- Competition from online retailers
- Manufacturing and product innovation challenges
- Increasing pressure on margins
- DBG’s ability to successfully implement its business strategy
- Growth of its wholesale and direct-to-consumer businesses
- Changes and challenges affecting the retail industry
- Information technology and cybersecurity risks
- The Company’s ability to properly collect, use, manage and secure consumer and employee data
- Stability of manufacturing facilities and foreign suppliers
- DBG’s ability to accurately forecast product demand
- Continuity of management
- Protection of trademarks and other intellectual property
- Potential goodwill and other asset impairments
- DBG’s ability to execute and integrate acquisitions
- Changes in tax laws and liabilities
- Legal, regulatory, political and economic risks
- Adverse or unexpected weather conditions
- DBG’s indebtedness and ability to obtain financing on favorable terms
- Climate change and increased focus on sustainability issues
Additional information concerning factors that could affect Digital Brands Group’s financial results is contained in the Company’s public filings with the U.S. Securities and Exchange Commission (SEC), including its Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Digital Brands Group undertakes no obligation to publicly update or revise forward-looking statements as a result of new information, future events or otherwise, except as required by law.
Investor Relations Contact
Digital Brands Group, Inc. Investor Relations Department Email: invest@digitalbrandsgroup.co
SOURCE: Digital Brands Group, Inc.
ORIGINAL PR: https://www.businesswire.com/news/home/20260924645993/en/