DBGI Outlines Expansion Plan for the Estimated $36 Billion NIL College Apparel Market with Yea Alabama Partnership as Foothold

Rhea-AI Summary

Digital Brands Group (NASDAQ:DBGI) launched a strategic initiative to expand into the NIL college apparel market, citing a licensed sports merchandise segment estimated at $36.4B in 2024 and projected to reach $49.0B by 2030. DBGI signed an exclusive three-year private label manufacturing agreement with Yea Alabama to design, produce, and distribute collegiate apparel through University of Alabama bookstores and Yea Alabama's online storefront. Initial and September capsules are available now, with new collections planned for October, November and December 2025. DBGI positions a DTC, data-driven model, equity-aligned partnerships for university right holders, and a stated focus on creating NIL opportunities for female student athletes.

Positive

• Exclusive three-year private label manufacturing agreement with Yea Alabama
• Distribution via University of Alabama bookstores and Yea Alabama online storefront
• Planned capsule releases in October, November, and December 2025
• Targets a NIL/licensed sports merchandise market cited at $36.4B (2024) and $49.0B (2030)

Negative

• Initial rollout limited to a single-university partnership (University of Alabama)
• Expansion beyond Alabama is described as "in discussions" and not yet contractual

Insights

Commercial Strategy Analyst

Exclusive 3-year private‑label deal with Yea Alabama provides a concrete foothold in a large NIL apparel market; execution and scaling are key.

DBGI’s agreement creates a direct-to-university commercial channel where Digital Brands Group (DBGI) designs, manufactures, and distributes private‑label collegiate apparel through University of Alabama bookstores and the Yea Alabama online storefront. The model targets margin capture via manufacturing control and lower retail prices while collecting first‑party consumer data to iterate collections faster than traditional licensors.

Key dependencies include the company’s ability to convert the Alabama pilot into repeatable university agreements, maintain supply‑chain agility, and monetize equity alignment with right holders without material cost increases. Risks include concentration in a single program during the three‑year term and the need to prove unit economics at scale before wider roll‑out.

Concrete items to watch: rollout cadence of capsule releases in October, November, and December 2025, metrics on sell‑through and average order value, any announcements of additional university partnerships, and whether the company discloses revenue or margin figures tied to this program within the next 12 months. Also monitor adoption among female student‑athletes if DBGI reports participation metrics tied to that initiative.

Austin, Texas, Oct. 06, 2025 (GLOBE NEWSWIRE) -- Digital Brands Group, Inc. (NASDAQ:DBGI) (the “Company” or “Digital Brands”), today announces the launch of its strategic initiative to aggressively expand the Company’s presence in the Name, Image, and Likeness (“NIL”) college apparel sector, a segment currently part of the global licensed sports merchandise market, which was estimated at $36.4 billion in 2024, and projected to increase to $49.0 billion by 2030, according to Grand View Research

Expansion Strategy & Competitive Positioning

DBGI’s launchpad into the NIL-college apparel space is its newly signed exclusive three-year private label manufacturing agreement with Yea Alabama, the official NIL program of the University of Alabama. Under this agreement, DBGI will exclusively design, manufacture, and distribute collegiate apparel under private label through University of Alabama bookstores and Yea Alabama’s online storefront (https://store.yea-alabama.com/collections/avo).

The initial product line, as well as the September product capsule, is available now at both the bookstore and (https://store.yea-alabama.com/collections/avo). The Company is planning to release new capsule collections will in October, November and December 2025.

“We believe that we have created the Warby Parker of collegiate apparel, with a focus on a direct-to-consumer (DTC), data-driven scalable model,” said Hil Davis, CEO of Digital Brands Group.

Next Phase

The Company is in discussions to expand this strategy with additional universities by building on the model set forth under the Alabama agreement. Each partnership will mirror the Yea Alabama structure, offering university right holders:

1. Private Label Manufacturing Advantage — DBGI designs, produces, and delivers high quality collegiate apparel directly through university-affiliated channels at a lower price than traditional offerings.

2. Equity Alignment — Like Yea Alabama, each university right holders becomes a partner with DBGI, creating a unique alignment of interests and providing upside participation that competitors cannot offer.

3. Supports female student athletes — DBGI is committed to generate future NIL market driven opportunities for female student athletes, which is one of the first NIL initiatives directed specifically to female student-athletes.

4. Agility and Consumer Data — By leveraging a nimble supply chain and direct customer data, DBGI can deliver faster, more trend-responsive collections compared to incumbent providers.

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.

Digital Brands Group, Inc. Company Contact
Hil Davis, CEO

Email: invest@digitalbrandsgroup.co
https://ir.digitalbrandsgroup.co

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: DBG’s ability to implement the strategies and drive the results expected with respect to its Alabama partnership; DBG’s ability to replicate and expand on the Alabama model with additional universities; 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.

FAQ

What did DBGI announce on October 6, 2025 regarding NIL apparel?

DBGI announced an initiative to expand into the NIL college apparel market and an exclusive three-year private label agreement with Yea Alabama.

How will DBGI sell University of Alabama apparel under the Yea Alabama deal?

DBGI will design, manufacture, and distribute private-label collegiate apparel through University of Alabama bookstores and the Yea Alabama online storefront.

When will DBGI release new capsule collections for the Yea Alabama partnership?

The company plans new capsule collections in October, November, and December 2025.

What market size is DBGI targeting with its NIL expansion (DBGI)?

The release cites the licensed sports merchandise market at $36.4B in 2024 and projects it to $49.0B by 2030.

Does the Yea Alabama agreement give DBGI exclusive rights?

Yes. The agreement is described as an exclusive three-year private label manufacturing arrangement for Yea Alabama channels.

Will DBGI expand the NIL model to other universities (DBGI)?

DBGI is in discussions to replicate the Alabama partnership with additional universities, but those are not yet finalized.