Dolce & Gabbana net profit soars, revenues up 9% on strong Italy
today Oct 16, 2017
Dolce & Gabbana closed the financial year 2016/17 on March 31, 2017 with a turnover of 1.296 billion euros, a 9% increase on the previous year, according to the balance sheet consulted by the financial website Business Insider Italia.
D&G Srl, which controls the group, obtained a 57.6 million euro dividend from Dolce & Gabbana Holding. The latter oversees Dolce & Gabbana Trademarks, owner of the group's brands, and Dolce & Gabbana Srl, in charge of the label's operations in Italy and abroad.
D&G's consolidated balance sheet showed a net profit of 80 million euros, around four times higher than the 17.93 million achieved by the company in 2015/16, and an EBITDA of 168 million euros.
This result is due largely to an increase in sales, particularly in Italy, which represents 24% of total turnover, with the rest of Europe making up 27%, the Americas 13%, and Japan 6%.
Dolce & Gabbana's strong presence in its domestic market has led the Milanese house to further its initiatives abroad. On October 4, the brand organised a runway show in the Isetan Department Store, Tokyo, for which the creative duo Domenico Dolce and Stefano Gabbana designed a special collection. In the same month, the label also opened its first outlet store in Mexico, in the Premium Outlets Punta Norte mall, in the northwest of the country.
For the holiday season, the brand has plans for a large-scale operation with London-based luxury department store Harrods. These will include the launch of exclusive products, as well as a number of in-store interventions organised by Dolce & Gabbana from November 2 to December 28, such as in stores-in-stores, a Christmas tree, window displays and a traditional Italian market.
Breaking down the brand's results by distribution channel, Dolce & Gabbana's wholesale increased 8.7% in 2016/17, retail grew 7.1% to 769 million euros, while licensing revenue fell 9.2% to 61.2 million euros.
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