Digital Brands Group Reports Initial Findings from AI Brand Protection Deployment with Herschel Supply Co.

AUSTIN, Texas--(BUSINESS WIRE)--Digital Brands Group, Inc. (NASDAQ:DBGI) (the “Company,” “Digital Brands Group” or “DBG”) today announced initial findings from its AI powered brand protection deployment with Herschel Supply Co., following the previously announced partnership supported by SECUR3D Inc.

Following initial deployment, Digital Brands Group has received its first findings report from the AI-driven monitoring system. During the initial search phase, the platform identified counterfeit activity representing more than $500,000 in estimated lost revenue exposure attributable to unauthorized listings and brand misuse across global digital marketplaces.

The findings highlight the scale and measurable financial impact of counterfeiting in today’s ecommerce environment. Traditional enforcement models rely heavily on manual detection and reactive takedown processes. By leveraging AI to continuously scan, analyze, and prioritize risks, Digital Brands Group can surface revenue exposure data at scale, enabling brands to respond more efficiently and proactively.

“This initial report demonstrates both the economic impact of counterfeiting and the power of AI-driven protection,” said Hil Davis, Chief Executive Officer of Digital Brands Group. “If over half a million dollars in exposure can be identified during early deployment for a single brand, it underscores how meaningful scalable AI protection becomes for larger global brands. The same infrastructure can also support universities and NIL stakeholders, where protecting licensed merchandise, athlete names, images, and likenesses is increasingly critical.

As collegiate NIL ecosystems expand and officially licensed merchandise grows across digital marketplaces, Digital Brands Group believes the ability to monitor and defend intellectual property at scale will become increasingly important. The Company views the Herschel deployment as a proof point for how AI-based brand protection can be extended across consumer brands, universities, and emerging NIL-driven commerce environments.

Digital Brands Group expects to provide further updates as enforcement actions progress and as additional brands and rights holders are onboarded to its AI-powered platform.

About Digital Brands Group

We offer a wide variety of apparel through numerous brands on a both direct-to-consumer and wholesale basis. We have created a business model derived from our founding as a digitally native-first vertical brand. We focus on owning the customer's "closet share" by leveraging their data and purchase history to create personalized targeted content and looks for that specific customer cohort.

Forward-looking Statements

Certain statements included in this release are "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting DBG and therefore involve several risks and uncertainties. You can identify these statements by the fact that they use words such as “will,” “anticipate,” “estimate,” “expect,” “should,” and “may” and other words and terms of similar meaning or use of future dates, however, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements regarding DBG’s plans, objectives, projections and expectations relating to DBG’s operations or financial performance, and assumptions related thereto are forward-looking statements. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. DBG undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Potential risks and uncertainties that could cause the actual results of operations or financial condition of DBG to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: the Company’s ability to successfully integrate OPN to achieve the expected results; the level of consumer demand for apparel and accessories; disruption to DBGs distribution system; the financial strength of DBG’s customers; fluctuations in the price, availability and quality of raw materials and contracted products; disruption and volatility in the global capital and credit markets; DBG’s response to changing fashion trends, evolving consumer preferences and changing patterns of consumer behavior; intense competition from online retailers; manufacturing and product innovation; increasing pressure on margins; DBG’s ability to implement its business strategy; DBG’s ability to grow its wholesale and direct-to-consumer businesses; retail industry changes and challenges; DBG’s and its vendors’ ability to maintain the strength and security of information technology systems; the risk that DBG’s facilities and systems and those of our third-party service providers may be vulnerable to and unable to anticipate or detect data security breaches and data or financial loss; DBG’s ability to properly collect, use, manage and secure consumer and employee data; stability of DBG’s manufacturing facilities and foreign suppliers; continued use by DBG’s suppliers of ethical business practices; DBG’s ability to accurately forecast demand for products; continuity of members of DBG’s management; DBG’s ability to protect trademarks and other intellectual property rights; possible goodwill and other asset impairment; DBG’s ability to execute and integrate acquisitions; changes in tax laws and liabilities; legal, regulatory, political and economic risks; adverse or unexpected weather conditions; DBG's indebtedness and its ability to obtain financing on favorable terms, if needed, could prevent DBG from fulfilling its financial obligations; and climate change and increased focus on sustainability issues. More information on potential factors that could affect DBG’s financial results is included from time to time in DBG’s public reports filed with the U.S. Securities and Exchange Commission (the “SEC”), including DBG’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Forms 8-K, each filed or furnished with the SEC.