New York, June 1, 2026, 19:04 (EDT)
- Digital Brands Group finished the session at $0.84, climbing 73.36%. In after-hours, the stock was last quoted at $1.17.
- Digital Brands Group said it got first purchase orders under its larger GCC partnership and for a $125 million U.S. program.
- The company reported in its latest 10-Q that first-quarter revenue dropped to $1.3 million from $1.9 million. Net loss increased to $11.4 million from $2.1 million.
Digital Brands Group shares jumped Monday after the apparel and e-commerce company announced it got initial purchase orders under a wider deal with Global Combat Collective. The stock finished at $0.84, up more than 73%, before rising to around $1.17 in after-hours trade.
Timing played a role. The Business Wire release hit at 2:40 p.m. CDT, or 3:40 p.m. in New York, just ahead of the regular U.S. market close. Nasdaq after-hours runs from 4 p.m. to 8 p.m. ET, so the stock was still trading once the bell rang. June 1 was an ordinary trading day, with Nasdaq’s 2026 schedule showing the next holiday is Juneteenth on June 19.
Investors wanted to see if the company’s licensing play would actually deliver orders. Digital Brands said the wider GCC deal now covers revenue chances from apparel and soft goods through digital, in-person, and event channels, as well as hospitality.
Digital Brands Group CEO Hil Davis said what the company had seen as a broader opportunity in GCC is “now a reality.” Davis added the new opportunities are “incremental” to the May guidance. Business Wire
Digital Brands’ guidance from May was large compared to its current scale. The company put out a 2026 revenue forecast of $55 million to $65 million and projected free cash flow between $2.5 million and $3.5 million. Digital Brands also guided for $100 million to $115 million in revenue in the year starting July 1, 2026, through June 30, 2027.
GCC’s April announcement put the possible contract haul at up to $125 million, though it stressed actual amounts would depend on future orders, requirements, and conditions. It noted the deal wasn’t a direct government contract for DBGI or GCC.
Joshua Chasse, GCC president and co-founder, said in April the deal showed a “broader strategic alignment” on supply, brand growth and long-term value. Davis called it the “beginning of a broader opportunity” with GCC at the time. Business Wire
Google Finance reported volume soared to 63.22 million shares, way above the 2.98 million average. The company’s value stood around $19.4 million after Monday, according to .
The move outpaced the rest of the market, despite stocks rallying. U.S. indexes hit records on Monday, with both the S&P 500 and Nasdaq Composite logging another run of highs, market reports said.
Digital Brands is much smaller than other online apparel sellers. Yahoo data show Revolve Group at around $1.39 billion in market cap and Stitch Fix at about $487 million. An order update can swing DBGI’s price more than what’s seen at bigger retail players.
Digital Brands’ filing isn’t straightforward. Its most recent quarter showed no profit since launch, a $7.5 million working capital deficit as of March 31, and management expects ongoing losses. The company also said a $3.5 million promissory note was past due and technically in default.
Dilution risk is another factor. The company runs an at-the-market (ATM) program allowing it to sell up to $100 million in new shares under its shelf registration. It said equity financings and warrant exercises are both options it can use for liquidity. But selling more stock means existing holders could see their ownership diluted.
The key now is if those early purchase orders end up as actual revenue, margin, and cash for the company. Monday’s release didn’t say how big the first orders were. Traders are waiting for more filings, more orders, or any hint that the GCC channel can make up for the weak first-quarter numbers.
