Digital Brands Group and The Grove Collective, the Official NIL Program for the University of Mississippi, Announce Exclusive Apparel Private Label Manufacturing Agreement

Rhea-AI Summary

Digital Brands Group (NASDAQ:DBGI) entered an exclusive three-year private label manufacturing agreement with The Grove Collective, the University of Mississippi's official NIL program.

The first capsule, a playoff collection, launches online on December 19, 2025 with a game-day activation at Ole Miss on December 20, 2025. Additional monthly capsule drops are scheduled for January, February and March 2026, featuring Ole Miss Powder Blue and Rebel Red.

Each purchase will contribute to The Grove Collective's NIL fund supporting female student-athletes, and the partners emphasize a direct-to-consumer collegiate apparel strategy and targeted NIL opportunities for female athletes.

Key Figures

Agreement term 3 years Exclusive private label manufacturing agreement with The Grove Collective

NIL fund commitment $500,000 per year Annual investment into student-athlete funds for 3 years under Grove agreement

Marketing spend $500,000 per year Digital advertising and influencer marketing tied to Grove NIL deal

Equity consideration $3,000,000 common stock Stock to be issued to The Grove Collective over 3-year term

Extension equity $1,000,000 per extension Additional stock for each one-year extension of Grove agreement

Shelf registration size $100,000,000 Maximum aggregate offering under Form S-3 shelf

Registered resale shares 1,442,308 shares Common stock registered on Form S-1 for AAA Tuscaloosa and Traffic Holdco

Shares outstanding 6,326,930 shares Common shares outstanding as of November 14, 2025

Market Reality Check

$7.58 Last Close

Volume Volume 102,170 vs 20-day avg 82,556 (relative volume 1.24x) ahead of this announcement. normal

Technical Price at $8.70, trading below 200-day MA of $9.15 despite recent gains.

Peers on Argus

Peers show mixed moves: BRIA up 0.76%, AKA up 3.09%, CATO up 2.11%, TLYS down 1.55%, DXLG flat. DBGI’s 4.69% gain appears more company-specific, tied to collegiate/NIL initiatives rather than a broad apparel retail move.

Common Catalyst One peer, DXLG, had an earnings-timing headline, but there is no shared theme around collegiate or NIL partnerships across peers today.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 08	AI marketing partnership	Positive	-5.3%	AI influencer marketing integration across brands and collegiate programs.
Dec 03	Collegiate apparel promo	Positive	+2.8%	AVO custom Crimson Out tee distribution at Alabama vs Clemson game.
Nov 14	Q3 2025 earnings	Negative	-2.5%	Lower net revenues and ongoing net loss despite stronger balance sheet.
Nov 14	eCommerce tech partnership	Positive	+2.5%	SECUR3D partnership to bolster IP protection and brand authenticity.
Nov 12	eCommerce tools expansion	Positive	+0.1%	Added Secur3D.ai AssetSafe automation for counterfeit and IP protection.

Pattern Detected

Recent partnership and tech/NIL updates have produced mixed but generally modest price reactions, with one notable negative divergence on an AI marketing deal.

Recent Company History

This announcement continues Digital Brands Group’s push into collegiate and tech-enabled commerce. In November 2025, DBGI reported lower Q3 revenues but highlighted rapid growth in its AVO collegiate business. Around that time it expanded eCommerce protection tools via Secur3D partnerships and later announced an AI-driven influencer marketing partnership with Aha. The December Alabama “Crimson Out” tee promotion further showcased the collegiate focus. Today’s Grove Collective private-label NIL agreement fits this ongoing strategy and formalizes terms previously detailed in a late November 8‑K.

Regulatory & Risk Context

Active S-3 Shelf Registration 2025-11-07

$100,000,000 registered capacity

DBGI has an active Form S-3 shelf filed on 2025-11-07 to offer up to $100,000,000 of various securities, subject to Baby Shelf limitations. No usage is recorded yet, but once effective it provides flexibility for future capital raises that could introduce equity or other securities into the market.

Market Pulse Summary

This announcement formalizes a 3‑year exclusive private label manufacturing agreement with The Grove Collective, deepening DBGI’s collegiate NIL strategy. The related 8‑K outlines annual commitments of $500,000 to NIL funds and $500,000 to marketing, plus up to $3,000,000 in stock over the term. Investors may track execution of upcoming capsule launches, the impact on AVO collegiate revenues, and how these obligations intersect with DBGI’s $100,000,000 Form S‑3 shelf capacity.

Key Terms

name, image, and likeness regulatory

"The Grove Collective is the official University of Mississippi name, image, and likeness"

Name, image, and likeness (NIL) describes an individual's legal right to be paid when their personal identity—their name, photograph or video, and public persona—is used for commercial purposes. For investors, NIL matters because the ability to earn from and license these rights creates new revenue streams, alters the value of sponsorships and media deals, and can shift consumer attention and brand economics much like owning the rights to a popular spokesperson.

NIL regulatory

"name, image, and likeness (“NIL”) program established to cultivate and harness NIL opportunities"

Nil means zero or none — that a measured item, amount, or occurrence is absent. For investors, seeing “nil” on a report, balance sheet, or regulatory filing is like finding an empty pocket where money or activity was expected: it can reduce expected income, remove a liability, or indicate no exposure to a particular risk, and therefore affects valuation, forecasts, and decision-making.

direct-to-consumer (DTC) model financial

"DBGI’s innovative approach using a direct-to-consumer (DTC) model focused on the collegiate apparel market"

A direct-to-consumer (DTC) model is a way companies sell products or services straight to the end buyer—often through their own website, app, or stores—bypassing traditional middlemen like wholesalers and third‑party retailers. It matters to investors because selling direct can boost profit margins, give clearer insight into customer demand and loyalty, and speed up feedback and growth, though it also shifts the burden of marketing and delivery onto the company, affecting cash flow and scalability.

AI-generated analysis. Not financial advice.

Austin, Texas, Dec. 11, 2025 (GLOBE NEWSWIRE) -- Digital Brands Group, Inc. (Ticker: [NASDAQ:DBGI] a publicly traded company specializing in eCommerce and Fashion today announced it has entered into an Exclusive Private Label Manufacturing Agreement with The Grove Collective for a three-year period.

The Grove Collective is the official University of Mississippi name, image, and likeness (“NIL”) program established to cultivate and harness NIL opportunities for University of Mississippi student-athletes, including acting as the NIL marketing agent for student-athletes attending the University of Mississippi.

The first capsule collection, which will be the playoff capsule collection, will launch December 19th online followed by a game day activation at Ole Miss on the 20^th for the playoff game. Additionally, new product capsule collections are scheduled to be released January, February and March, including products in Ole Miss Powder Blue and Rebel Red.

Every purchase supports female student athletes at the University of Mississippi through a contribution to The Grove Collective’s NIL fund. AVO and The Grove Collective are 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.

“We are excited to launch this private label program with The Grove Collective. This is one of several meaningful announcements from product launches to partnerships coming over the next few months. We believe that we have positioned ourselves as the Warby Parker of collegiate apparel. Given the significant month over month revenue growth that we have experienced for several months in a row, we believe that we have created a compelling and unique customer value proposition, which will scale quickly,” said Hil Davis the Chief Executive Officer of Digital Brands Group.

“We believe this partnership with AVO and Digital Brands Group will continue to elevate and activate our student athletes with one of the most passionate fanbases in college sports. DBGI’s innovative approach using a direct-to-consumer (DTC) model focused on the collegiate apparel market will continue to solidify The Grove Collective, and The University of Mississippi with our commitment to creativity and effectiveness in college athletics,’ stated Walker Jones the Executive Director of The Grove Collective.

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: risks arising from the widespread outbreak of an illness or any other communicable disease, or any other public health crisis, including the coronavirus (COVID-19) global pandemic; 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 SEC, including DBG’s Annual Report on Form 10-K, and Quarterly Reports on Form 10-Q, and Forms 8-K filed or furnished with the SEC.

FAQ

What did DBGI announce about the agreement with The Grove Collective (DBGI) on December 11, 2025?

DBGI announced an exclusive three-year private label manufacturing agreement with The Grove Collective.

When will the first Ole Miss capsule collection from DBGI launch online and on campus?

The playoff capsule launches online on December 19, 2025 and has a game-day activation at Ole Miss on December 20, 2025.

What products and timing did DBGI announce for follow-up capsule releases?

Additional capsule collections are scheduled for January, February and March 2026, including Ole Miss Powder Blue and Rebel Red items.

How will purchases support University of Mississippi student-athletes under the DBGI partnership?

Every purchase contributes to The Grove Collective’s NIL fund to support female student-athletes at the University of Mississippi.

What is the strategic retail model DBGI will use for the Ole Miss apparel program?

DBGI will use a direct-to-consumer (DTC) model focused on collegiate apparel distribution and marketing.

Does the DBGI agreement include a focus on NIL opportunities for female student-athletes?

Yes; the partnership highlights initiatives specifically directed to female student-athletes to generate NIL market-driven opportunities.