An apparel company with a market cap of $38.31 million, Digital Brands Group is foraying into the Name, Image, and Likeness (NIL) college apparel market.
The company has signed an exclusive three-year private label manufacturing agreement with Yea Alabama, the official NIL program for the University of Alabama.
Under the terms of the deal, DBGI will handle the design, manufacturing, and distribution of collegiate apparel. These products will be sold through University of Alabama bookstores and Yea Alabama’s online store. The initial product line and a September collection are already available, with further capsule collections scheduled from October through December 2025.
Digital Brands Group plans to replicate this model across other universities, offering both private label manufacturing and potential equity partnerships. Hil Davis, CEO, states, the company aims to be the Warby Parker of collegiate apparel, focusing on a direct-to-consumer, data-driven, and scalable approach.
Importantly, the program has a provision to direct 20 per cent of every apparel purchase to female student-athletes via the university's NIL fund. This NIL sector is part of the larger global licensed sports merchandise market, which is projected to grow from an estimated $36.4 billion in 2024 to $49.0 billion by 2030.
While DBGI is making aggressive growth moves, InvestingPro analysis points to some financial challenges, including a current ratio of 0.33, which suggests potential liquidity constraints.
In other recent news, the company has taken steps to boost its financial and technological standing. DBGI secured an additional $1.5 million in PIPE financing, amending a previous agreement to issue more Series D Convertible Preferred Stock. Its technology arm, Open Daily Technologies Inc, joined the NVIDIA Connect Program. This partnership provides DBGI with access to NVIDIA's AI and machine learning resources, engineering expertise, and discounts on hardware and software, aiming to enhance product development and efficiency.
These recent developments indicate a significant strategic pivot by Digital Brands Group to strengthen its financial position and technological capabilities as it aggressively pursues the rapidly growing college NIL market.
