D&G is growing but finds itself at a strategic crossroads. The Italian fashion house is determined to maintain its independence, but to do so, it has decided to broaden its horizons: from strengthening its beauty business to a debut in real estate and hoteliers, the brand does not intend to give in to financial market pressures. D&G has one goal: to increase beauty revenues from the current 610 million to 1 billion by 2027 and thus exceed 2 billion in overall sales. A daunting challenge that doesn’t go directly through fashion and accessories. But there is one non-negotiable item: Dolce & Gabbana is not interested in opening its capital to third parties.
D&G grows thanks to beauty
The beauty segment, we said, is the one on which Dolce & Gabbana is working hardest on. As Il Giornale points out, one of the first moves was to move from a licensing model to a direct management one, thus bringing in production and distribution. The brand opted for internal management, turning the business into a strategic asset. And the results look encouraging: by March 2025, beauty could exceed 610 million euros in sales (+20% annually), with the prospect of reaching 1 billion by 2027. This momentum would, among other things, help bring total sales over 2 billion. But despite the current turnover of about 1.9 billion euro recorded last year, profitability remains low. Profits remain small compared to those of other Italian “rival” companies.
Real estate and hôtellerie
Not only beauty. To open up to diversification, the brand has also begun to focus on real estate and hôtellerie, with these projects being developed in exclusive locations such as Miami and Dubai, as well as luxury hotels in the Maldives and Saudi Arabia. To finance these ambitious initiatives, the group has begun negotiations with banks to seek new loans of up to 150 million euros. However, it’s fair to note that Dolce & Gabbana’s attentions and resources have been diverted (at least at this time) to other sectors and not directly to fashion product. These sectors, however, still need to be consolidated: especially if the brand wants to maintain its independence. “We listen to everyone, investment banks, family offices, private equity firms. But our answer is always the same: at the moment we are not interested in opening our capital”, Alfonso Dolce, CEO of the brand, stressed to Bloomberg.
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