Dolce & Gabbana eyes “stable and high-profit” beauty market expansion

Luxury fashion house Dolce & Gabbana has secured €150 million (US$171.3 million) in funding to help grow its beauty division.

Dolce & Gabbana will reportedly use the funds to launch new fragrances, enter the skin care market, and update its makeup line to increase the beauty division’s business from €1 billion (US$1.14 billion) to €3 billion (US$3.42 billion) by 2026.

The funds will also help expand the company’s real estate projects and refinance its existing loans, worth €400 million (US$457.2 million).

The deal was made with a group of banks and is partly backed by Italy’s state-owned credit insurer, SACE. According to Bloomberg, the Italian fashion house raised the funds through a private bond placement, with investors including the Milan-based fund, Algebris.

Beauty market’s appeal

The funding supports Dolce & Gabbana’s shift toward managing its beauty operations in-house. The company began this process in 2022, when it ended its licensing deal with Shiseido and brought its beauty product development, manufacturing, and operations under its direct control in Milan, Italy.Dolce & Gabbana’s expanding beauty line aims to triple revenue by 2026.

Demand for high-end fashion is reportedly cooling, and Dolce & Gabbana is said to see beauty as a more stable, high-profit category. The company hopes this will help it stay independent in a changing market.

Premium beauty

In the world of premium beauty, Indian cosmetics brand Colorbar is also making financial decisions to raise funds for product development, category expansion, and acquisitions amid India’s stable luxury beauty spending.

Moreover, Estée Lauder recently opened its first Skin Longevity Institute in the Americas through an exclusive partnership with luxury resort Hacienda AltaGracia in Costa Rica.