Digital Brands Group Inc. (NASDAQ:DBGI) shares are trending on Tuesday.
Shares Surge On Expanded GCC Partnership
DBGI shares spiked 38.28% to $1.16 in after-hours trading on Monday, after the Austin-based apparel and e-commerce company announced initial purchase orders under its $125 million U.S. Program following an expanded partnership with Global Combat Collective.
GCC is a premier boxing organization dedicated to delivering high-level fight events worldwide, bringing together elite fighters from various disciplines and showcasing top-tier matchups for fight fans globally, according to its website.
New Channels Exceed Prior Guidance
The announcement, made during market hours, expands apparel and soft-goods revenue streams across GCC’s digital networks, physical installations, and domestic and international events and hospitality venues. The impact is incremental to the guidance issued on May 12.
CEO Hil Davis said, “These additional revenue opportunities are new and incremental to the company’s previous guidance.”
The GCC deal, first announced on Apr. 30, has since expanded in scope. Davis said the company believed the partnership “represented the beginning of a broader opportunity,” adding that the programs being developed with GCC would create meaningful long-term shareholder value.
Trading Metrics, Technical Analysis
Digital Brands has a market capitalization of $19.44 million, a 52-week high of $18 and a 52-week low of $0.26.
The Relative Strength Index (RSI) of DBGI stands at 43.35.
The small-cap stock has dropped 93.88% over the past 12 months.
Currently, DBGI is positioned very close to the bottom of its 52-week range.
The stock’s steep fall and weak position indicate that pressure on the shares may persist, underscoring the elevated risk and the need for clear evidence of a turnaround before investor sentiment improves.
Price Action: DBGI closed the regular session up 73.36% at $0.84, according to Benzinga Pro.
Benzinga’s Edge Stock Rankings indicate that DBGI has a negative price trend across all time frames.
Photo Courtesy: Things on Shutterstock.com
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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