Stagnant results for Dolce Gabbana
Following the closure of its D&G line earlier this year, Italian luxury house Dolce Gabbana‘s turnover for 2012 is likely to stagnate at 1,1 billion euros, registering an EBITDA of 280 million euros. The company maintains cash reserves of 400 million euros. Sales in Italy dropped by 8 percent in the first quarter of 2012 compared to the same period last year, while sales in Japan dropped by 17 percent, both negative performances are due to the closure of the D&G line, which also caused 15 percent drop in revenues from licensing (sunglasses, watches, fragrances).
Dolce Gabbana has pursued direct investments worldwide in the opening of new stores or renovation of existing ones: 11,8 million euros in China and Hong Kong, 6,5 million euros in Rome, 8 million euros in Las Vegas and New York, as well as other 10 million euros in Europe, for the opening of the store in Berlin and renovations of stores in London, Paris, Madrid, Barcelona. Additionally, Dolce Gabbana has invested over 18 million euros in the Metropol Theatre which has become the permanent venue for the catwalk shows and events of the maison.
Dolce Gabbana will be expanding in 2013 with mono-brand store openings in Canada, Mexico, Brazil and Chile. Dolce Gabbana’s expansion in Brazil includes two stores. The house has been focusing on a more luxury positioning for its label as well as craftsmanship and Made in Italy.