Luxury / news
Dolce & Gabbana secures bank waiver as revenues dip 2%, debt rises
Dolce & Gabbana reported a 2% revenue decline to €1.86 billion for the fiscal year ended March 31 and secured a bank waiver after breaching loan covenants.
The privately owned Italian fashion group posted an operating loss of just over €100 million for the year, while net financial debt climbed to €464.5 million from €379.6 million a year earlier, breaching conditions tied to its bank loans.
Revenue fell 2% to €1.86 billion ($2.17 billion) in the 12 months through March 31. The company said growth in its beauty division helped offset a weaker performance in its core fashion business.
Following the covenant breach, Dolce & Gabbana reached a new agreement with its lending banks to waive remedies related to the breach and suspend covenant testing until March 31, 2028.
In exchange, the group committed to complete “extraordinary financing transactions” to strengthen liquidity and to bring its net debt-to-EBITDA ratio below 3 by March 2028.
Separately, the company raised €150 million by extending its eyewear licence agreement with EssilorLuxottica until 2050, according to the filing.
Earlier this year, a source said the company, advised by Rothschild, was exploring ways to raise fresh money, including asset disposals such as real estate.