The Dolce&Gabbana group has reached an agreement with credit institutions to renegotiate its debt and obtain time until 2028. The agreement comes in a delicate phase after the exceeding of some conditions foreseen by the loans, the so-called covenants. According to what emerges from the financial statements closed on March 31st and approved by the shareholders’ meeting on July 29th, the group’s net financial debt rose from 511.1 million to 677.6 million euros. In the document, the company explains that the worsening is linked to the “deterioration of cash flows deriving from operating activities” and the investments made in the period.
Dolce&Gabbana and the agreement with the banks
The credit institutions have renegotiated the agreements relating to a loan of 295.8 million euros, divided into two credit lines. The new agreement allows the group founded in 1985 by Domenico Dolce and Stefano Gabbana to have more time to meet its financial commitments. The management report indicates that the renegotiation is based on an estimate of financial flows for the period 2027-2031. The forecasts include progressively growing profitability, but without hypotheses of extraordinary productivity of existing assets.
To support the financial plan, Dolce&Gabbana has committed to closing some extraordinary operations it is working on within a year. These also include the sale of properties, indicated as one of the possible levers for finding resources and reducing the pressure on accounts. The choice is part of a strategy to strengthen the financial structure, after the increase in debt and the overcoming of loan covenants.
Possible properties for sale
In June AGI had already spoken about the possibility of the sale of some properties by the Dolce&Gabbana group. In particular, these would be some buildings in Milan including the offices in the Porta Venezia area. In fact, the group owns some company properties concentrated in the famous Milanese district and which are used as offices and showrooms. As a MarketBeat report by Cushman and Wakefield, office rents in the city’s central business district have grown steadily, up to 820 euros per square meter a year in the first quarter, while retail spaces are the most expensive in Italy.
The factors that affected the financial statements
Dolce&Gabbana’s turnover fell by 2% to 950.5 million euros. The fashion division, which recorded an overall decline of 8%, had the greatest impact. The gross operating margin went from a positive figure of 26.9 million in the previous year to a negative value of 8.9 million. The final loss stood at 170.11 million euros, an improvement compared to the red of 204.1 million recorded in the previous year.
The balance sheet also indicates some external factors that affected the results. These include “the worsening of geopolitical tensions, particularly in the Middle East”, starting from February 2026, and the imposition of American tariffs.
