Following perhaps years of speculation, D&G Dolce & Gabbana take a tartan exploration. Whether tartan has the potential to become a part of mainstream fashion only time will tell.
Established in 1985, Dolce & Gabbana is one of today’s leading international luxury goods groups. The two founders, Domenico Dolce and Stefano Gabbana, have always been the creative and stylistic source of the two brands, Dolce & Gabbana and D&G Dolce & Gabbana, and the originators of a growth strategy based on balanced development and focus on the core business. The Group designs, produces and distributes high-end clothing, leather goods, footwear and accessories under the Dolce & Gabbana and D&G Dolce & Gabbana brands. Through a series of licensing agreements, it also produces and distributes fragrances and eyewear for the Dolce & Gabbana and D&G Dolce & Gabbana brands and timepieces and jewels for the D&G Dolce & Gabbana brand. Continuous growth over the years has given the Dolce & Gabbana group a solid base, and paved the way for further expansion. In addition to being the sole owner of the two brands, the Group is also wholly responsible for the management and control of the three business divisions: Production, Distribution and Licences. The Group has direct control over the entire value chain, from creation to sale, for both brands, with the exception of products under licence. Manufacturing operations are headed by Dolce & Gabbana Industria S.p.A., which operates the two production facilities, in Legnano and Incisa in Val d’Arno.
The wholesale distribution in Europe of the Dolce & Gabbana and D&G brands is managed by the head offices from Milan. The directly operated stores are controlled by DGS S.p.A in Italy and by local companies, reporting directly to Dolce & Gabbana S.r.l., throughout the rest of Europe. The monitoring of foreign markets is carried out by the subsidiaries in New York, Tokyo and Hong Kong, which, entirely controlled by Dolce & Gabbana S.r.l. co-ordinate the management of retail and wholesale distribution in their respective territorial areas. With specific reference to the Chinese market, the Hong Kong branch operates directly on the territory via local structures in Shanghai, Hangzhou and Taipei. In addition, branches in Rome, London, Paris, Barcelona and Düsseldorf have recently been opened for the distribution of the D&G Dolce & Gabbana brand.
Results
Also with the fiscal year 2006/2007, which ended 31 March 2007, the Dolce & Gabbana group confirms the positive growth trend of the last few years, registering significant increases in its main business and financial aggregates. Wholesale revenues – of Dolce & Gabbana and D&G Dolce & Gabbana brand products achieved by the Group and licensees – reached 1,554.3 million euros, a growth of 35% with respect to the previous year. The figure includes revenues, equal to approximately 200 million euros, from sales of the new Motorazr V3i Dolce & Gabbana, the fruit of a special co-branding project between Dolce & Gabbana and Motorola. For the same period, the consolidated revenues of the parent company, Dolce & Gabbana Luxembourg S.Ã .r.l., came to 1,050.9 million euros, representing a growth of 30% with respect to the previous year; the Ebitda increased by 30%, reaching 298.8 million euros; while the Ebit grew by 31%, standing at 213.4 million euros; net income amounted for 149.7 million euros, with an increase of 38%. Again as of 31 March 2007, the Group has an overall workforce of 3,140 units and a directly managed distribution network comprising 93 stores and 11 factory outlets.
