Italian luxury fashion house Dolce & Gabbana has reported a 4 per cent revenue increase for the fiscal year ending March 31, reaching US$2.2 billion.

This growth was mainly driven by an 11 per cent rise in wholesale sales, which now make up 46 per cent of total revenue. However, retail sales fell by 3 per cent, reflecting difficulties in key markets like Europe and Asia.

Despite revenue growth, Dolce & Gabbana reported a widened net loss of $136 million, compared to $15 million the previous year.

The company’s fashion and home division saw an 8 per cent revenue decline to $1.4 billion, due to weaker demand in Europe and China, partially offset by gains in the Middle East, South America, and South Africa.

In contrast, the beauty segment performed strongly, with sales up 30 per cent year-over-year to approximately $699 million. 

Since 2022, Dolce & Gabbana has expanded its makeup range to more than 100 products, planning a complete line of 350 SKUs, and introduced a skincare line, dubbed Fresh Skin Collection, this year. 

Looking ahead, the company aims to reach $1.1 billion in annual beauty sales by the end of fiscal 2027, following its shift from licensing to direct management of the beauty division.

Additionally, Dolce & Gabbana secured $116 million in medium-term financing and extended the maturity of a $345 million term loan to 2030.