Dolce & Gabbana's Operating Loss Widens to 13 Mln Euros in 2023-24

The logo of fashion house Dolce & Gabbana is seen outside a shop in Milan, Italy, April 8, 2024. (Reuters)
The logo of fashion house Dolce & Gabbana is seen outside a shop in Milan, Italy, April 8, 2024. (Reuters)
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Dolce & Gabbana's Operating Loss Widens to 13 Mln Euros in 2023-24

The logo of fashion house Dolce & Gabbana is seen outside a shop in Milan, Italy, April 8, 2024. (Reuters)
The logo of fashion house Dolce & Gabbana is seen outside a shop in Milan, Italy, April 8, 2024. (Reuters)

Dolce & Gabbana Holding posted a wider operating loss of 13 million euros ($14.4 million) in the fiscal year through March after stepping up investments in its shop network and its beauty division which it brought in house, a filing showed.

The operating loss was 1 million euros in the previous fiscal year, according to documents filed with the Italian Chamber of Commerce.

While requiring higher investments, the decision to internalize the cosmetics business, which Dolce & Gabbana took in 2022, boosted revenues, the document showed.

The holding, which controls the Italian fashion house founded by the designer duo Stefano Gabbana and Domenico Dolce, posted a 17% increase in revenues to 1.87 billion euros in the 12 months to March 31.

Sales in Europe, which represent 50% of the fashion and home division's sales, grew 6% year-on-year. Sales in the other main geographic areas declined, with the US market in particular down 13%.

Demand for luxury goods has been cooling globally after an exceptionally strong post-pandemic rebound, posing a major challenge to some brands as performances across the sector vary significantly.

Reuters reported in July that Dolce & Gabbana was likely to seek a minority investor in the near term, after CEO Alfonso Dolce told an Italian newspaper earlier that month that the fashion house could either do that or consider a stock market listing.



Zara Owner Inditex Sees Good Holiday Season after Weak Third Quarter

FILE PHOTO: People shop during the opening of a Zara store after fashion giant Inditex resumed its operations in Venezuela under a franchise agreement, in Caracas, Venezuela April 25, 2024. REUTERS/Leonardo Fernandez Viloria/File Photo
FILE PHOTO: People shop during the opening of a Zara store after fashion giant Inditex resumed its operations in Venezuela under a franchise agreement, in Caracas, Venezuela April 25, 2024. REUTERS/Leonardo Fernandez Viloria/File Photo
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Zara Owner Inditex Sees Good Holiday Season after Weak Third Quarter

FILE PHOTO: People shop during the opening of a Zara store after fashion giant Inditex resumed its operations in Venezuela under a franchise agreement, in Caracas, Venezuela April 25, 2024. REUTERS/Leonardo Fernandez Viloria/File Photo
FILE PHOTO: People shop during the opening of a Zara store after fashion giant Inditex resumed its operations in Venezuela under a franchise agreement, in Caracas, Venezuela April 25, 2024. REUTERS/Leonardo Fernandez Viloria/File Photo

Zara owner Inditex said the start of the holiday season had got off to a good start after it reported weaker than expected quarterly results as rainy weather hit some key European markets.
The company behind Zara and other brands said its sales rose a slower than expected 7% to 27.4 billion euros ($28.84 billion) during the period, below the 8% expected by analysts.
Its net profit of 4.44 billion euros for the first nine months of 2024, up 8.5% from a year earlier, was below analysts' average expectation of 4.52 billion euros.
The company however reported a better start of the holiday season, with revenues rising 9% during the six weeks to Dec. 9 as the world's biggest fast-fashion retailer kept drawing in shoppers even as rivals struggled.
Revenue growth in the period, which includes the key Black Friday sales, was slower than the 14% increase reported a year ago, though.
"We had a strong start to the last quarter against a demanding comparable in the same period of 2023," Inditex's capital market director, Marcos Lopez, told Reuters.
He stressed that in constant currency sales growth was 10.5% in the first nine months of the fiscal year and the growth in constant currency during the third quarter was the faster of the year.