Digital Brands GroupDBGI +2.30%20 Gross Margin % is 3.42% as of Mar. 2026, which is 89% below its 10-year median of 31.53. GuruFocus rates DBGI with a GF Score™ of 20/100 and a GF Value™ of $0.22 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 1,117 Retail - Cyclical companies, Digital Brands Group ranks worse than 96.6% on this metric.
DBGI's Gross Margin % is ranked worse than 96.6% of 1117
companies
in the Retail - Cyclical industry
Industry Median: 36.23
vs DBGI: 3.34
Digital Brands Group had a gross margin of 3.42% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Digital Brands Group was 7.40% per year.
Digital Brands Group (NAS:DBGI) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Digital Brands Group had a gross margin of 3.42% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Digital Brands Group Gross Margin % Related Terms
Digital Brands Group Gross Margin % Historical Data
* Premium members only.
The historical data trend for Digital Brands Group's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
DBGI vs LSEB, IVDN, JEM: Gross Margin % Comparison
For the Apparel Retail subindustry, Digital Brands Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Digital Brands Group Gross Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Digital Brands Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Digital Brands Group's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Digital Brands Group (DBGI) has a Gross Margin % of 3.42% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Digital Brands Group and its competitors. This is 89% below median its historical median of 31.53. Over the past decade, Digital Brands Group's Gross Margin % has ranged from 3.34 to 46.41. According to the industry distribution chart, Digital Brands Group ranks #1079 out of 1117 companies in the Retail - Cyclical industry, placing it in the top 96.6%.
Is Digital Brands Group's Gross Margin % too high?
Digital Brands Group's current Gross Margin % of 3.42% is 89% below median its 10-year median of 31.53. Over the past 10 years, this metric has ranged from a low of 3.34 to a high of 46.41. The Retail - Cyclical industry median Gross Margin % is 36.23. Digital Brands Group's value of 3.42% is 90.6% below this industry median. Based on the distribution chart, Digital Brands Group ranks #1079 out of 1117 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, Digital Brands Group has a GF Score™ of 20/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Digital Brands Group's Gross Margin % compare to LSEB and IVDN?
According to the Retail - Cyclical industry distribution chart, Digital Brands Group ranks #1079 out of 1117 companies for Gross Margin %. This places Digital Brands Group in the lower half of its industry. The industry median Gross Margin % is 36.23. Digital Brands Group's value of 3.42% is 90.6% below this benchmark. Historically, Digital Brands Group's own Gross Margin % has ranged from 3.34 to 46.41 over the past decade. While the company's 10-year median is 31.53 vs. the industry median of 36.23, Digital Brands Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Cyclical company?
The median Gross Margin % among Retail - Cyclical companies is 36.23, based on 1,117 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Digital Brands Group's current Gross Margin % of 3.42% is 90.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Digital Brands Group and its competitors. For the Retail - Cyclical industry, the median Gross Margin % is 36.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digital Brands Group's current Gross Margin % is 3.42%, which is 89% below median its own 10-year median of 31.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digital Brands Group stock overvalued right now?
Based on GuruFocus' analysis, Digital Brands Group (DBGI) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.22, compared to a current price of $0.71 — trading 223% above its estimated fair value. The current Gross Margin % is 3.42%, which is 89% below median its 10-year median of 31.53 and 90.6% below the Retail - Cyclical industry median of 36.23. Digital Brands Group's overall GF Score™ is 20/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Digital Brands Group (DBGI), the current Gross Margin % is 3.42% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Digital Brands Group (DBGI) Overvalued in 2026?
Based on GuruFocus' analysis, Digital Brands Group stock appears to be overvalued.
The current stock price of $0.71 is trading 223% above its estimated GF Value™ of $0.22.
GuruFocus considers Digital Brands Group to be Significantly Overvalued.
Key valuation signals for DBGI:
Gross Margin %: 3.42% (89% below median its 10-year median of 31.53)
GF Value™: $0.22 vs. price of $0.71 (223% above fair value)
Industry Position: 90.6% below the Retail - Cyclical median (#1079 of 1117)
No single metric tells the full story. See the DBGI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Digital Brands Group Inc manages a portfolio of lifestyle brands offering apparel products through direct-to-consumer and wholesale distribution channels. It operates in the retail and technology sector, offering apparel products alongside digital tools that support product authentication, data security, and customer engagement. It connects consumers with a range of fashion and lifestyle brands through its platform. Its brand portfolio consists of Bailey 44, DSTLD, Sundry, Stateside, and Avo. The Company operates as a single reportable segment - direct-to-consumer (DTC) fashion brands. It derives its revenue from wholesale and e-commerce transactions.
20GF Score
Get the complete analysis for DBGI
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
DBGI has been successfully added to your 
