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Digital Brands Group Delivers 221% Revenue Growth While Cutting Marketing Spend by 78%
Collegiate Athletic Brand Achieves 3.65x ROAS as Weekly Net Revenue Rises 442%
AUSTIN, Texas, September 24, 2026–(<a href="https://www.businesswire.com” rel=”nofollow noopener” target=”_blank”>BUSINESS WIRE)–Digital Brands Group, Inc. (“DBG” or the “Company”) (NASDAQ: DBGI),a publicly traded company specializing in apparel and e-commerce, today announced significant growth and improved marketing efficiency across its collegiate licensing brand, AVO (https://shopavo.la/).
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 last year. During the period, AVO also achieved a 3.65x return on ad spend (ROAS).
The results reflect accelerating revenue growth alongside significantly improved capital efficiency.
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221% year-over-year revenue growth from August 1 through September 11, 2026
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78% reduction in digital marketing spend compared with the same period in 2025
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3.65x ROAS, demonstrating improved efficiency of marketing investment
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442% increase in weekly net revenue from Week 1 to Week 6 among universities launched in 2026
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For universities launched during 2026, weekly net revenue increased 442% from Week 1, representing the week of August 1, through Week 6, representing the week of September 5.
Building on this momentum, AVO plans to launch a completely redesigned e-commerce platform during the first week of October. The new platform is being developed by newly appointed board member David Sosnowski, who previously served as the growth architect at Vuori during a period in which the company experienced a 2400% revenue expansion. The redesigned platform is intended to improve key e-commerce performance metrics, including conversion rates, average order value, and customer engagement.
“We are encouraged by the combination of strong revenue growth and substantially lower marketing expenditures,” said Hil Davis, CEO of Digital Brands Group. “The performance we are seeing across AVO demonstrates increasing efficiency in how we are acquiring and monetizing customers. With the launch of the redesigned e-commerce platform in October, we believe there is an opportunity to further improve conversion and marketing efficiency. Our target is to achieve a 5x ROAS, which would provide a foundation to scale digital advertising investment alongside revenue.”
AVO’s recent performance demonstrates the potential for revenue growth without a corresponding increase in marketing expenditure. The combination of higher revenue, lower customer-acquisition spending, and improving ROAS provides DBG with an opportunity to increase marketing investment as the business demonstrates additional operating leverage.
