Recently, according to media reports, Italian luxury brand Dolce & Gabbana stated that in the rapidly changing luxury industry, the beauty business has become the foundation for the brand’s continued independence.
Dolce & Gabbana CEO Alfonso Dolce revealed in a recent interview with overseas media that for the 12 months ending in March 2025, sales in the beauty segment are expected to grow by more than 20%, reaching €610 million, driving the brand’s total revenue to €2 billion.
Public records show that Dolce & Gabbana was founded in 1985 by Italian designers Domenico Dolce and Stefano Gabbana, with headquarters in Milan, Italy. In 2023, the brand’s revenue exceeded €1.8 billion.
According to financial reports, in fiscal year 2024 (ending March 2024), Dolce & Gabbana’s revenue reached approximately €1.9 billion, reflecting a 19% year-on-year increase at constant exchange rates, primarily driven by a nearly fivefold surge in beauty product sales. Earnings before interest and taxes (EBIT) stood at €4 million.
Additionally, Dolce & Gabbana is in the process of transitioning its beauty and fragrance business from a licensing model to in-house operations. The company aims to grow this segment’s revenue to €1 billion by 2027.
Reports indicate that at the end of 2021, Dolce & Gabbana’s licensing agreement with Japanese beauty giant Shiseido came to an end. As a result, Dolce & Gabbana became the first Italian luxury brand to bring its fragrance and cosmetics business in-house. In February 2022, the company established Dolce & Gabbana Beauty, directly managing the development, production, and sales of its perfumes and cosmetics.
To further strengthen its position, Dolce & Gabbana is also exploring new revenue streams, including real estate and hospitality ventures, although no definitive plans have been made. Alfonso Dolce pointed out that the company’s diversification strategy is partly due to its heavy reliance on tourists traveling to the Mediterranean and the temporary nature of post-pandemic recovery.
Furthermore, the Russia-Ukraine conflict, which began in 2022, resulted in a revenue loss of over €100 million. China’s economic slowdown and shifting consumer preferences have also negatively impacted the brand’s performance.
Despite these uncertainties, Alfonso Dolce remains confident in the company’s ability to grow independently. “If the macroeconomic situation worsens further, we have our own properties and warehouses, and we can cut advertising expenses. Our (advertising expenditure) is twice that of our industry peers.”
Alfonso Dolce also reiterated that the company is not interested in external investors—at least for now. “We have listened to everyone—investment banks, family offices, private equity firms—but our answer remains the same: at this moment, we are not interested in opening up our capital.”
