DOLCE GABBANA continues major restructuring, yet expects timid growth
After registering a 20% increase in wholesale orders for the Spring Summer 2011 collection, Italian luxury group DOLCE GABBANA expects an overall 4% growth for its fashion division for 2010. For the figures reported on March 31st, DOLCE GABBANA have registered a 14,7% decrease in its total revenues to a value of EUR 1,03 billion compared to EUR 1,19 billion in 2009. Wholesale dropped by 13% and licensed products sales dropped by 9,8% (sunglasses, watches, fragrances and cosmetics). However, there were also good news with sales in its directly controlled retail stores increasing by 3% to a level of EUR 380 million. The Asia Pacific region registered a growth of 32%.
The restructuring strategy of CEO Cristina Ruella initiated earlier this year has already proven its results, saving EUR 10 million in fixed costs, acquisitions and services. The advertising budgets have been cut by almost EUR 41 million. 173 employees have been laid off, the total number of staff being 3.400. Part of the restructuring plan is also the closure of the 18 D&G boutiques in Japan, while the 16 Dolce Gabbana stores will be kept. The results are already visible in the net profit, which increased by 18% to EUR 126,2 million in comparison with 2009.