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In this collection, Dolce drew upon his Sicilian roots. Their fourth collection was the first to make a significant impact on the Italian fashion market. They called their collection of T-shirt-cotton and elastic-silk pieces, Transformation." The clothing in this collection came with instructions on the seven different ways a piece could be worn in an outfit, as the wearer could use Velcro and snaps to alter the clothing's form. Their few models changed behind a rickety screen.

Michael Gross wrote of their third collection in a 1992 interview, "They were a secret known only to a handful of Italian fashion editors. In 1990 the brand opened its first women's boutique in Via Sant’Andrea, Milan. They produced the next collection in 1986. However, Dolce's family offered to help meet their costs when the two visited them in Sicily over Christmas, while incidentally, the fabric company did not receive the cancellation notice in time so the fabric was ready for them back in Milan upon their return. Sales from their first collection were disappointing enough for Gabbana to cancel the fabric order they'd put in to create their second collection. The name of the collection was due in part to the participation of local women as models on the runway. In March 1986, Dolce & Gabanna released their first self-produced collection Woman FW 1986/1987 entitled Donne Vere/Real Women. They used a bed sheet that Dolce had brought from home as their stage curtain. The models (their friends) simply wore their personal items to complement the clothing.

The two did not have enough money to hire models or provide accessories for them, so they sought help from their friends. The SS 1986 collection was titled Geometrissimo alongside five other up-and-coming Italian labels as part of Milan Fashion Week. The Dolce&Gabbana brand was born with a women's fashion show in Milano Collezioni in the New Talents section.

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By 2005, their turnover was €600 million. By the end of the 1990s, the company's revenues were around US$500 million and in 2003 their revenue reached $633 million. They won the Woolmark award in 1991, and Perfume's Academy "Most Feminine Flavor of the Year" in 1993 for their fragrance Dolce & Gabbana Parfum. In 1990, the same year they presented their men's collection for 1991/1992, they also launched their first perfume Dolce & Gabbana. Dolce & Gabbana started to export their products to Japan and other countries including the United States, where they founded their own showroom in 1990. In 1987, Dolce & Gabbana presented the Women's SS 1988 fashion show entitled Il Gattopardo/The Leopard line, and in 1989 they began designing underwear and swimming costumes. They presented their first women's collection in 1985 in Milan, where a year later their store would open its doors. In 1983, they established a designer consulting studio under the name "Dolce & Gabbana". They met each other in 1982 in Milan club and designed for the fashion brand of Giorgio Correggiari. Dolce & Gabbana ( Italian pronunciation: ) is an Italian luxury fashion house founded in 1985 in Legnano by Italian designers Domenico Dolce and Stefano Gabbana.