DSTLD growth stays strong, prepares London listing, UK debut and new brand
LA-based celebrity favourite jeans and cool casualwear brand DSTLD is planning to launch in the UK and its parent company will list its shares in London this year as the label sees on-going strong growth and the company also prepares to unveil a second brand this month.
DSTLD, which was founded by photographer and DJ Corey Epstein and entrepreneur Mark Lynn in 2014, is owned by Digital Brands Group and sells ethically produced jeans for less than $100.
On Thursday it said that it will list on the Alternative Investment Market (AIM) in the first half, the same market that plays host to mega successes Asos and Boohoo.
The listing should value it at around £27 million and will happen as the brand makes a push into the UK market using money raised in an earlier fundraising round involving US investors and a current Crowdcube campaign that closes on January 18.
The parent company also said Thursday that it saw “outstanding festive growth with early December revenue up 40% year-on-year.”
Digital said the “performance has been underpinned by the quality and appeal of the DSTLD brand, an increasing range of products and collections, and effective digital-led marketing strategies.” It added that the growth “demonstrates the group’s momentum ahead of its planned listing.”
DSTLD, which has been worn by high-profile celebrities including Alessandra Ambrosio, Sofia Richie and Cara Delevingne, is able to sell at premium rather than luxury prices, the firm said, thanks to its direct-to-consumer business model and “has served more than 80k customers since its foundation.”
Digital also said that it’s aiming to “develop and acquire like-minded and fast-growing direct-to-consumer brands [that] will leverage shared resources that support and market their products, while maintaining and creating their own unique customer values and identities. This model helps to drive down fixed costs, fuel innovation, support the customer experience and ultimately drive down prices for consumers.”
The first development in this strategy will be the launch of its second label, Ace Studios, “a luxury performance suiting and sportswear brand” this month, initially in the US market. The company said that Ace “will leverage Digital Brands Group’s CEO Hil Davis’s extensive experience which includes founding J Hilburn, a bespoke tailored clothing brand, which he built to a $55 million company in just six years.”
Meanwhile Davis said that he’s “delighted with the group’s outstanding momentum over the festive period and during 2018, particularly since our supply chain investments made in the summer.”
And he added that the team is “encouraged by the latest round of fundraising from customers and early stage investors in the US, UK and other territories who believe in our products, model and prospects.”
He described 2019 as being “transformational” for the group with the extension of DSTLD to the UK, the debut of Ace and the London listing.
But is this a good time to launch major UK activities? He thinks it is. “Despite the macro-economic uncertainties in the UK market, particularly in the retail sector, we see tremendous opportunities for the group,” Davis said. “We believe that we will offer a unique opportunity for investors as a digital-led retailer, with a portfolio of unique brands, and a significant bias towards US dollar denominated revenue.”
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