DBGINot HalalF
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Compliance Status

Not Halal

Screened on Oct 9, 2026 · AAOIFI Standard 21

F

Non-Compliant

0Score

Is Digital Brands Group, Inc. (DBGI) halal? Not Halal. Based on AAOIFI screening, Digital Brands Group, Inc. passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

Quote this verdict

HalalScreener rates Digital Brands Group, Inc. (DBGI) Not Halal, 0/100, grade F under AAOIFI Standard 21, screened Oct 9, 2026. Source: https://halalscreener.app/en/stock/DBGI

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

414.8% of 30.0% limit
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Screened according to AAOIFI Standard 21

What this means for you

Most scholars advise not holding DBGI

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

Digital Brands Group, Inc.

DBGI: Is Digital Brands Group, Inc. Halal?

Digital Brands Group, Inc.

NASDAQConsumer CyclicalUS

$4.01

Market Cap: 3.7M

Screened on a market cap of 4.2M

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About Digital Brands Group, Inc.

Digital Brands Group, Inc. (DBGI) functions as an apparel enterprise, distributing its diverse array of clothing labels both directly to consumers and via wholesale channels. Its brand portfolio includes DSTLD, which features denim garments, and ACE Studios, focused on high-end men's suiting. The Bailey brand is dedicated to designing, manufacturing, and marketing women's fashion, offering items like dresses, tops, jumpsuits, bottoms, sets, jackets, and rompers. Harper & Jones specializes in luxury, custom-tailored and made-to-measure apparel, encompassing suits, sportswear, shirts, jackets, pants, shorts, and polos. Additionally, the Stateside label provides premium T-shirts, tops, and bottoms. DBGI's direct-to-consumer sales are facilitated through its proprietary online platforms. For its wholesale operations, products are distributed through specialty retailers, select department stores, and the company's own showrooms. The company, which was originally incorporated in 2012 under the name Denim.LA, Inc., is presently headquartered in Austin, Texas.

Sector: Consumer Cyclical · Industry: Apparel - Retail

Why this does not pass

  • Interest-bearing debt is 414.8% of market cap, over the 30% AAOIFI limit.
  • Interest-bearing deposits are over the 30% limit.

Screened under AAOIFI Standard 21. The exact figure behind this is part of Pro; the failing check and its limit are always free.

Shariah Compliance Status

AAOIFI Standard 21Updated Oct 9, 2026

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Screened according to AAOIFI Standard 21

Compliance History

  1. Not Halalnow

    since Oct 2026

  2. Under Review

    until the change above

Tracked since Aug 2026. Updates automatically on each re-screen.

Fiscal: Q2 2026Data source: EDGAR
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Frequently Asked Questions

Is Digital Brands Group, Inc. (DBGI) halal to invest in?
Digital Brands Group, Inc. (DBGI) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did Digital Brands Group, Inc. get a F compliance rating?
Digital Brands Group, Inc. (DBGI) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 414.8% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change Digital Brands Group, Inc.'s Shariah verdict?
Digital Brands Group, Inc.'s verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is Digital Brands Group, Inc. re-screened for Shariah compliance?
Digital Brands Group, Inc. (DBGI) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Oct 9, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.