Dolce & Gabbana sees slowdown in sales in China after racist ad controversy
- Dolce & Gabbana’s overall revenues in the year ended March 2019 grew 4.9 per cent to US$1.54 billion
- But the Asia-Pacific market shrank to 22 per cent from 25 per cent of total turnover
Italian fashion house Dolce & Gabbana expects sales in China to fall in the current financial year after a slowdown in 2018-19, in a sign the brand is still struggling to shake off the fallout from a controversial advertising campaign in the country.
Chinese customers account for more than a third of spending on luxury products worldwide, and are increasingly shopping for these in their home market rather than on overseas trips.
Dolce & Gabbana’s overall revenues in the year ended March 2019 grew 4.9 per cent to 1.38 billion euros (US$1.54 billion), more than half of which came from sales in shops and outlets, the group said in a filing to Italy’s Chamber of Commerce seen by Reuters.
But the Asia-Pacific market shrank to 22 per cent from 25 per cent of total turnover and the group expects sales in Greater China to decline in the current financial year, ending in March 2020, the filing said.
Dolce & Gabbana, which does not publicly disclose its results, was not immediately available for a comment.