Dolce & Gabbana Holding posted a wider operating loss of 13 million euros ($14.4 million) in the fiscal year through March after stepping up investments in its shop network and its beauty division which it brought in house, a filing showed.

The operating loss was 1 million euros in the previous fiscal year, according to documents filed with the Italian Chamber of Commerce.

While requiring higher investments, the decision to internalise the cosmetics business, which Dolce & Gabbana took in 2022, boosted revenues, the document showed.

The holding, which controls the Italian fashion house founded by the designer duo Stefano Gabbana and Domenico Dolce, posted a 17% increase in revenues to 1.87 billion euros in the 12 months to March 31.

Sales in Europe, which represents 50% of the fashion and home division’s sales, grew 6% year-on-year. Sales in the other main geographic areas declined, with the U.S. market in particular down 13%.

Demand for luxury goods has been cooling globally after an exceptionally strong post-pandemic rebound, posing a major challenge to some brands as performances across the sector vary significantly.

Reuters reported in July that Dolce & Gabbana was likely to seek a minority investor in the near term, after CEO Alfonso Dolce told an Italian newspaper earlier that month that the fashion house could either do that or consider a stock market listing.