Revenue at the privately held company dipped 2% to €1.86 billion, with gains in the beauty division failing to compensate for the slump in apparel sales. This downturn pushed net financial debt to €464.5 million, up from €379.6 million the previous year, triggering a breach of existing loan covenants.

To stabilize its balance sheet, the firm negotiated a suspension of covenant testing with its banking pool until March 2028. In return, Dolce & Gabbana must execute extraordinary financing maneuvers to reduce its net debt-to-EBITDA ratio to below 3 within that window. The company has already extended its eyewear licensing agreement with EssilorLuxottica until 2050 to secure an immediate €150 million cash injection. Rothschild is currently advising the brand on further capital-raising strategies, which may include the divestment of real estate assets.