Dugarry came through the youth ranks at Bordeaux alongside future France teammates Bixente Lizarazu and Zinedine Zidane. He spent eight years at Bordeaux, scoring 34 goals in 187 appearances. His two goals against AC Milan in the 1996 UEFA Cup quarter-finals helped to seal a move to that club for the 1996–97 season.
Dugarry managed just 5 goals in 27 appearances for Milan, before joining Barcelona the following season. After only seven appearances in his sole season there, he returned to France, first with Marseille. He then returned to Bordeaux, where he played another 65 games, scoring 9 goals.
In 2003, he joined Birmingham City on loan, as the second World Cup-winner to join the team, after Alberto Tarantini in 1978. His prominence earned him rough treatment from opposition defenders. After a run of 5 goals in 4 matches cemented the club's Premier League status, moving them from the relegation zone to 13th, Dugarry joined the club on a permanent two-year deal in May 2003. He saw out only the first season, scoring one goal in 15 appearances before leaving the club by mutual consent, citing family reasons. He then signed a one-year contract with Qatar SC, where he made no appearances. Following this, he retired from football in 2005. He has since been inducted into Birmingham City's Hall of Fame.