Digital Brands Group launches collegiate apparel initiative with Alabama

Published 30/09/2025, 14:06
Digital Brands Group launches collegiate apparel initiative with Alabama

NEW YORK - Digital Brands Group, Inc. (NASDAQ:DBGI), a $38.31 million market cap apparel company that has seen its stock surge 84% in the past week according to InvestingPro data, announced Tuesday the launch of a strategic initiative to expand into the Name, Image, and Likeness (NIL) college apparel market, beginning with an exclusive three-year private label manufacturing agreement with Yea Alabama, the official NIL program of the University of Alabama.

Under the agreement, DBGI will design, manufacture, and distribute collegiate apparel through University of Alabama bookstores and Yea Alabama’s online storefront. The initial product line and September collection are currently available, with additional capsule collections planned for October through December 2025.

The company aims to replicate this model with other universities, offering private label manufacturing capabilities and equity partnerships. The program includes a provision that directs 20% of every purchase to female student athletes through the university’s NIL fund.

"We believe that we have created the Warby Parker of collegiate apparel, with a focus on a direct-to-consumer, data-driven scalable model," said Hil Davis, CEO of Digital Brands Group, according to the press release.

The NIL college apparel sector is part of the global licensed sports merchandise market, which was estimated at $36.4 billion in 2024 and projected to reach $49.0 billion by 2030, according to Grand View Research data cited in the company statement.

Digital Brands Group offers apparel through multiple brands on both direct-to-consumer and wholesale bases. The company states its business model leverages customer data and purchase history to create targeted content for specific customer segments. InvestingPro analysis indicates the company faces financial challenges with a current ratio of 0.33, suggesting potential liquidity constraints. For deeper insights into DBGI’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Digital Brands Group has secured an additional $1.5 million in private investment in public equity (PIPE) financing. This amendment to their Securities Purchase Agreement, initially entered on August 8, allows for the issuance of more Series D Convertible Preferred Stock to an accredited investor. Meanwhile, Digital Brands Group has also joined the NVIDIA Connect Program through its technology arm, Open Daily Technologies Inc. This program offers access to NVIDIA’s AI and machine learning resources, engineering expertise, and global ecosystem. The benefits include technical training, engineering guidance, and discounts on NVIDIA software and hardware, which aim to support product development and enhance efficiency. These developments indicate significant strategic moves by Digital Brands Group to enhance its financial position and technological capabilities.

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