Dolce & Gabbana considers selling Milan properties to raise cash

Dolce & Gabbana is considering selling some of its Milan properties, including holdings in the city centre, and leasing them back—a move that would unlock cash while maintaining operational control, according to the Business of Fashion. The strategy reflects growing pressure on the Italian luxury sector to manage working capital amid a shifting global market for high-end goods.

The proposal underscores the financial strain facing Milan's fashion houses as demand softens in key markets and production costs remain elevated. A sale-and-leaseback arrangement allows companies to convert real estate into liquid funds without surrendering day-to-day control of their premises, a tactic increasingly common among European luxury brands navigating slower consumer spending and tighter credit conditions.

Milan's property market has remained resilient despite broader economic headwinds, with commercial real estate in the fashion district commanding premium valuations. For Dolce & Gabbana, which has deep roots in the city's design ecosystem, the move signals confidence in the long-term value of its locations even as it addresses near-term cash requirements. The Business of Fashion did not disclose the scale of the proposed sale or a timeline for completion.