Increased investments in expanding its retail network led to Dolce & Gabbana Holding widening its operating loss to€13 million ($14.4 million) during the fiscal year ending in March 2024The company had reported an operating loss of €1 million in the previous fiscal year, as per the documents submitted to the Italian Chamber of Commerce.

Revenues of the holding company, which manages the Italian fashion house founded by Stefano Gabbana and Domenico Dolce, grew by 17 per cent to €1,87 billion during the 12 months ending March ’24.

Accounting for 50 per cent of the company’s business from the fashion and home division, European sales increased by 6 per cent Y-o-Y while sales in other regions including the US declined. The company recorded a 13 per cent decline in sales in the American market.

The slowdown in demand for luxury goods, following a strong post-pandemic surge, has presented challenges for many brands, with performance across the sector varying widely. In July, Reuters reported that Dolce & Gabbana might be seeking a minority investor, after Alfonso Dolce, CEO indicated, the company might consider either this option or a potential stock market listing.