In an interview with Corriere della Sera on Monday, Dolce & Gabbana CEO, Alfonso Dolce, said he was ready to open up its capital to external investors, including through an IPO. The aim: to expand on a massive scale in the United States.
“We are now ready to consider opening up the capital to third parties through a stock market listing or other financial instruments,” said Alfonso Dolce, Domenico's brother and the company's managing director. While rumors of a possible IPO for the company founded in 1985 by Domenico Dolce and Stefano Gabbana spread through the fashion world last May, the CEO replied that placing the company on the stock market was not yet one of his priorities. Yet, barely two months later, the hypothesis is confirmed.
Although the luxury goods sector is experiencing particularly difficult times, the Italian company, which has been in business for 40 years, is doing rather well. Dolce & Gabbana's sales for the 2023-2024 financial year, which ended in March, rose by +17% to €1.871 billion ($2.04 billion). “A level we hope to repeat next year”, confirmed Domenico Dolce.
He also reminded us that forecasts are positive and that Dolce & Gabbana's ambition is to achieve similar growth in the new financial year. To do so, the iconic house of the '80s is counting above all on the American market: the region, which accounts for 72 of the brand's points of sale, contributed 28% of its sales last year. On the other hand, China, which is experiencing a slowdown in the luxury goods market, now accounts for just 16% of sales. We should remember that Dolce & Gabbana has long suffered from a “blunder” committed through an advertising spot that appeared at the end of 2018, which prompted the Chinese public to accuse the house of racism. Since then, customers in the Asian country have been much more reticent about the Italian brand's collections.
By 2018, D&G had 58 boutiques in Asia (in mainland China, Hong Kong and Macau) and had hired top local stars as brand ambassadors. That same year, a study by consulting firm Bain revealed that a third of all high-end purchases were made by Chinese consumers, both in China and abroad. But those days seem to be over, and the Italian label is now turning its attention to the United States, where 12 new stores are scheduled to open. These include a prestigious five-storey flagship on Madison Avenue in the heart of New York. “The United States is vital for us”, said Alfonso Dolce. And to boost these development plans, the company is definitely counting on new investors.
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