Pambianco published today the financial figures of Dolce and Gabbana for 2016.
The Company saw an increase of the revenues of 12,9% to 1,296 million euro.
The gross operating margin is 12,7% of the revenues (+1,5 vs PY). Despite that in the article it is underlined that this value is well under the average of 20% of several competitors.
I prefer to highlight how a company founded by two young guys with little means 32 years ago has succeeded and is acknowledged as one of the most influential fashion brands in the world. Dolce and Gabbana succeeded where others (with higher margins) didn’t: creating a Brand Vision and developing a consistent Brand DNA during the decades.
They focused their storytelling on the Italian traditions, colours and lifestyle. They created a successful Brand Image linked to the best of Italy.
Stefano Gabbana himself is an authentic Instagram star, engaging personally every day with his followers.
Dolce and Gabbana is a privately-owned company that is much more successful than many that are listed at the Stock Exchange.
So, is it really so important that the GOM is lower than 20%?
Or, isn’t it more important that the Brand Equity is strong and consistent and the Brand is unique?