Dolce & Gabbana closed its fiscal year (to 31 March) with revenue up 4% to 1.9 billion euro. The luxury house offset retail headwinds with gains in wholesale and licensing, while doubling down on an ambitious expansion of its beauty business. Profitability, however, remains under heavy pressure.
Growing wholesale, shrinking retail
Dolce & Gabbana owes its revenue growth mainly to wholesale. This division, accounting for 46% of income, grew by 11%. Retail, by contrast, contracted by 3%. Declining demand in Europe, China, and broader parts of Asia weighed heavily, whereas growth in the Middle East, South America, and South Africa could only partially offset the decline.
