Digital Brands Group, Inc. (DBGI) announced the launch of its AVO apparel capsule collection at the University of Colorado, scheduled to go live on Friday, February 27, 2026. The partnership includes a $25 gift‑card code, SKOBuffs, that can be redeemed on the AVO online store through March 31, 2026, giving students and alumni an immediate incentive to purchase the new line.
The launch is part of DBGI’s broader strategy to shift from a legacy wholesale model to a direct‑to‑consumer, collegiate‑focused approach. AVO positions itself as a premium‑quality brand at fair prices, bridging the gap between fast fashion and higher‑end apparel. The partnership also includes a donation of a portion of each sale to the university’s female student‑athlete NIL fund, aligning the brand with the growing NIL market and providing a social‑impact angle that can resonate with the campus community.
Financially, DBGI’s recent performance has been challenging. For the nine months ended September 30 2025, net revenues were $5.8 million, down from $9.4 million in the prior year, and the company posted a net loss of $7.7 million. Gross margin fell to 40% from 47% year‑over‑year, reflecting lower sales and inventory write‑offs. The company also reported a working‑capital deficit of $4.8 million and $6.4 million in debt as of September 30 2025. In Q3 2025, revenue was $1.7 million and net income was –$3.5 million, a decline that underscores the urgency of new revenue streams.
In November 2025, CEO Hil Davis noted that the Q3 results reflected the legacy wholesale business rather than the growing collegiate segment. He said wholesale revenues had bottomed out, but bookings for Spring 2026 were higher than the same period last year, and that the AVO collegiate brand was experiencing significant growth—albeit only with one university at the time. The February 2026 launch is a concrete step toward expanding that growth to additional campuses, aligning with Davis’s vision of a quality‑and‑value leader in collegiate apparel.
The collegiate apparel market is dominated by Fanatics, which benefits from exclusive licensing deals and a large data platform. DBGI differentiates itself with a data‑driven, direct‑to‑consumer model that keeps costs low and allows for rapid scaling. The University of Colorado partnership serves as a low‑cost, high‑visibility test bed for the AVO brand’s appeal and for the company’s broader NIL strategy, which is projected to grow from $36.4 billion in 2024 to $49.0 billion by 2030.
While the launch represents a strategic milestone, the company’s financial challenges mean that success will be critical. The gift‑card promotion offers an immediate incentive for the campus community, but the long‑term impact will depend on DBGI’s ability to scale the partnership to other universities, maintain profitability, and navigate the competitive collegiate apparel landscape.
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