Dolce & Gabbana seeks to raise cash as banks waive debt terms amid weaker luxury demand

Dolce & Gabbana is looking to raise cash outside of its day-to-day operations, including property sales, after banks agreed to waive the terms of its debt agreements as demand for luxury goods stays subdued. 

Dolce & Gabbana Holding Srl, the top-level holding company overseeing the group's fashion and beauty operations (which are run through separate subsidiaries) said it was granted the waiver of terms until 31 March 2028.

In exchange for the waiver, the company now has to complete a series of so-called 'extraordinary corporate transactions' by the end of June 2027, to provide cash for the group, according to its latest publicly available financial filings.

These transactions are in "advanced negotiation stage", according to a filing by the company's fashion division, and reportedly include the sale of properties, including in Milan's city centre. According to reports from earlier this year, the company would then lease these properties back.

The new terms also saw D&G's holding company agree to keep its debts below a threshold, equivalent to three times of the company profits, starting from 31 March 2028.

Revenues decreased by 2% to €1.86 billion (£1.59 billion) in the fiscal year ending on 31 March, according to filings seen by Reuters, with growth in the beauty division helping to offset a weaker performance in the group's core fashion business.The company recorded an EBITDA loss of just over €100 million (£8.6 million),

The same filing reportedly showed that the holding company's net financial debt increased to €465.5 million (£398 million) from about €379.6 million (£326 million) in the previous period, breaching conditions attached to the group's bank loans.

Meanwhile, Dolce & Gabbana fashion unit raised €150 million from EssilorLuxottica, by extending its eyewear licence agreement until 2050, the filings also showed.

Recent leadership shake-up 

Leadership shake-ups this year have already marked a moment of transition for the luxury house, which has in recent years expanded its universe beyond the runway into hospitality, interiors and immersive brand experiences, while continuing to stage its elaborate Alta Moda presentations across Italy’s historic locations.

Dolce & Gabbana's co-founder, Stefano Gabbana, stepped down as Chair of the company back in January.

Filings showed the designer notified the company of his decision in December 2025, with the change taking effect from 1 January. Chief Executive Alfonso Dolce, brother of co-founder Domenico Dolce, has since taken on the role of Chair.

The house confirmed that Gabbana’s departure from management positions does not affect his creative work, underlining that he will continue to shape collections alongside Domenico Dolce - a partnership that has defined the brand’s identity for four decades.

Gabbana is understood to also be considering options regarding his shareholding, though he remains closely involved in the brand’s future.

In April, Dolce & Gabbana then appointed former Gucci CEO Stefano Cantino as its new Co-CEO. Cantino now works alongside the newly appointed Chair and Co-CEO Alfonso Dolce.

Cantino joined Gucci as Deputy CEO in May 2024, becoming its Chief Executive Officer between January and September 2025. Prior to this, he spent five years at Louis Vuitton, where he oversaw communications and image, and 20 years at Prada, where his last role was Director of Communications and Marketing.

Dolce & Gabbana shared a statement outlining that the appointment of its new Co-CEO follows a "growth path" that will reposition the company from a fashion brand to a lifestyle company.

Dolce & Gabbana's history 

Founded in Milan in 1985 by Domenico Dolce and Stefano Gabbana, Dolce & Gabbana rose to prominence with a bold and quintessentially Italian vision of glamour.

Over the years, the house has maintained strong ties with celebrity and entertainment, dressing a range of exclusive figures across music, film and pop culture, reinforcing its image as a purveyor of dramatic, statement-making fashion.

Today, Dolce & Gabbana spans ready-to-wear, accessories, beauty and haute couture, with its Alta Moda and Alta Sartoria collections showcasing the highest levels of Italian design.

These presentations, often staged in historic settings from Sicily to Venice, have become a cornerstone of the brand’s storytelling.

Despite changes in its corporate structure, the label remains creatively led by its founders.