Dolce & Gabbana restructure business structure in Italy and consider IPO
According to Italian media, the house of Dolce Gabbana has decided to restructure its business in Italy, merging all the different companies under which it operates into Dolce Gabbana srl, as a holding entity.
Dolce & Gabbana has been operating in Italy on 4 different companies, Dolce Gabbana Industria (turnover 746 million euros; profit of 19 million euros), D.G.S (turnover 86,9 million euros; profit of 156.000 euros), Sto. Tex (turnover 26,9 million euros) and Dolce Gabbana Gold, its Food & Beverage operation (turnover 1.9 million euros). All these operations will be integrated into Dolce Gabbana srl (turnover of 331,8 million euros; profit of 47,6 million euros; cash reserves of 101 million euros).
The restructuring allows Dolce & Gabbana to reduce costs and improve business performance. In a statement, the company said the restructuring will also simplify the control over the various operations. During the recent Milan Fashion week, Dolce & Gabbana announced it would stop its younger, lower priced diffusion line D&G, which will be integrated into the main collection.
For 2010-2011, Dolce & Gabbana’s consolidated turnover increased by 10% reaching a total of 1,13 billion euros. The healthy financial results but also Prada’s recent successful IPO on the Hong Kong stock exhange seem to have prompted the two owners to analyze a potential IPO. Financial consultants are reported to have met frequently with company executives in the past months.