Digital Brands and Herschel Discover Over $500,000 in Counterfeit Losses
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 19 2026
0mins
Should l Buy DBGI?
Digital Brands 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 company said, "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."
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Analyst Views on DBGI
About DBGI
Digital Brands Group, Inc. specializes in e-commerce and fashion, which offers a variety of apparel through numerous brands on both a direct-to-consumer and wholesale basis. The Company is a modern retail and technology ecosystem reshaping the shopping experience. It focuses 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. Through its suite of technology tools, including artificial intelligence (AI)-powered IP protection, automated marketing, and advanced data security, each portfolio brand is able to cultivate its identity while scaling more efficiently and securely. Its brands include Bailey 44, DSTLD, Stateside, Sundry, and AVO. Bailey 44 is a contemporary womenswear brand that combines beautiful, luxe fabrics with on-trend designs in the date night category. Stateside is a womenswear crafted with natural fabrics and cut embodying relaxed elegance.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
CU Partners with DBGI to Launch AVO Apparel
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- Brand Exposure: This collaboration not only showcases the beautiful campus and talented athletes of the University of Colorado but also enhances AVO's market visibility through online platforms, likely attracting more consumer attention and purchases.
- Strategic Expansion: CEO Hil Davis stated that this launch is part of their strategic initiative to expand in the NIL apparel sector, with more product launches and partnership announcements expected in the coming months, further solidifying their market position.
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- Technology Application Rollout: Herschel will utilize SECUR3D's solution to detect counterfeit goods and protect its product designs, which is expected to significantly enhance brand integrity and market competitiveness across its global eCommerce operations.
- Strategic Expansion Plan: CEO Hil Davis stated that this collaboration represents the first step in their AI brand protection initiative, with plans to attract more large consumer brands in the future, thereby expanding partnerships across the global eCommerce landscape.
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See More
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See More
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- Market Potential: The global licensed sports merchandise market is projected to grow from $36.4 billion in 2024 to $49.0 billion by 2030, and DBGI's partnership with the University of Colorado reflects its confidence in expanding within the NIL apparel sector.
- Collaboration Launch: DBGI will introduce AVO apparel with a $25 gift card code, SKOBuffs, available until March 31, 2026, aiming to support student-athletes at the University of Colorado with each purchase, thereby enhancing emotional connections with consumers.
- Brand Exposure: This collaboration not only showcases the beautiful campus and talented athletes of the University of Colorado but also enhances AVO's market visibility through online platforms, likely attracting more consumer attention and purchases.
- Strategic Expansion: CEO Hil Davis stated that this launch is part of their strategic initiative to expand in the NIL apparel sector, with more product launches and partnership announcements expected in the coming months, further solidifying their market position.
See More
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- Shareholder Agreements Reached: Digital Brands Group's Series D Preferred Stock holders have entered into various private agreements regarding the ownership and rights of 9,375 Series D Shares, although the company is not a party to these agreements and cannot enforce their terms.
- Conversion Standstill Arrangement: One holder transferred 4,687 Series D Shares to another holder, who agreed not to convert any of the 9,375 Series D Shares until after May 31, 2026, ensuring capital stability for the company during this period.
- Leak-Out Limitations: After the conversion standstill ends, the holder agreed that the number of common shares sold on any trading day would not exceed 5,000 shares or 1% of the average daily trading volume, aimed at controlling market supply and protecting shareholder interests.
- Extending Holders Agreement: Two holders collectively owning 2,500 Series D Shares granted another holder a purchase option, and although the proposal was abandoned, they agreed not to sell more than 2,500 common shares on any single trading day to maintain market stability.
See More
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- Strong Dow Performance: The Dow Jones index gained over 200 points on Wednesday, rising 0.51% to close at 50,444.80, indicating positive market sentiment and increased investor confidence.
- NASDAQ and S&P 500 Up: Both the NASDAQ and S&P 500 rose by 0.50%, closing at 23,217.32 and 6,976.25 respectively, suggesting a broad recovery in tech and large-cap stocks, potentially attracting more investor interest.
- T-Mobile Earnings Beat Expectations: T-Mobile US reported fourth-quarter earnings of $2.14 per share, surpassing the analyst consensus of $2.06, with quarterly sales reaching $24.334 billion, exceeding the expected $24.181 billion, showcasing the company's strong performance.
- Improved Employment Data: The U.S. economy added 130,000 jobs in January, significantly above the market estimate of 70,000, while the unemployment rate fell to 4.3% from 4.4% in December, reflecting a recovering economy and an improving labor market.
See More
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- Market Underperformance: On Wednesday, shares of music and electronics stores collectively fell by approximately 1.5%, indicating challenges within the sector that may impact investor confidence and lead to capital outflows.
- Upbound Group Leads Decline: Upbound Group's stock dropped by about 4%, becoming the primary drag on the sector, highlighting potential operational pressures and intensified market competition risks.
- Vertiv Holdings Follows Suit: Vertiv Holdings saw a decline of approximately 1.8%, exacerbating concerns about the industry's future performance and potentially affecting its short-term financing capabilities.
- Overall Industry Trend: The downward trend in music and electronics stores may signal a slowdown in consumer spending, prompting businesses to reassess market strategies to navigate potential economic downturns.
See More
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- Brand Protection Partnership: Digital Brands Group has signed a partnership with globally recognized accessories brand Herschel Supply Co. to implement AI-driven brand protection through SECUR3D's AssetSafe™ platform, aimed at monitoring and addressing unauthorized use of brand assets online, thereby enhancing consumer trust and trademark protection.
- Technology Application Rollout: Herschel will utilize SECUR3D's solution to detect counterfeit goods and protect its product designs, which is expected to significantly enhance brand integrity and market competitiveness across its global eCommerce operations.
- Strategic Expansion Plan: CEO Hil Davis stated that this collaboration represents the first step in their AI brand protection initiative, with plans to attract more large consumer brands in the future, thereby expanding partnerships across the global eCommerce landscape.
- Ecosystem Development: By collaborating with specialized providers like SECUR3D, Digital Brands Group is creating an expanding ecosystem of brands leveraging AI tools to combat counterfeiting and digital IP misuse, enhancing brand growth and trust across its portfolio.
See More
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- First Partnership: AVO Clothing's collaboration with the Alabama Crimson Tide basketball team marks a significant milestone as they distribute custom Crimson Out tees during the Alabama vs. Clemson game, strategically expanding their presence in the collegiate sports market.
- Revenue Growth: Since launching the influencer event in September, AVO x Yea Alabama has experienced significant month-over-month revenue growth, indicating the success and scalability of their campus event model, which is expected to further enhance brand visibility and sales.
- Support for Female Athletes: AVO and Yea Alabama are committed to generating future NIL market opportunities specifically for female student-athletes, making this one of the first NIL initiatives aimed at empowering women in sports, showcasing the brand's dedication to gender equity.
- Community Impact: By collaborating with universities and hosting influencer events, AVO not only enhances its brand image but also strengthens community ties through monthly drops co-designed with student-athletes, driving empowerment for female athletes and fostering a community-first approach.
See More
