Prada Expands Its Luxury Empire
Prada announced on Tuesday that it acquired Versace, bringing two major Italian fashion houses together under one roof. The company paid $1.38bn, well below the roughly $2bn Capri Holdings invested in Versace in 2018. The acquisition strengthens Prada’s portfolio, which includes Miu Miu, and sharpens its position against rivals such as LVMH, owner of Dior, Fendi, and Louis Vuitton.
Versace Embarks on a New Chapter
Donatella Versace stepped down in March after 27 years leading the brand with glamorous designs and the iconic Medusa logo. She took control in 1997 after her brother Gianni’s murder and guided the house for decades. Dario Vitale succeeded her, bringing experience from Miu Miu, Prada’s youth-focused luxury label.
The Sale Reflects Slowing Sales
Versace is sold at a loss of around $700m after its sales declined. Capri Holdings also saw weaker results from other brands, including Michael Kors and Jimmy Choo. Under Capri, Versace shifted from ornate designs to a minimalist style while raising prices.
Prada Confirms Deal Completion
Prada stated in a brief announcement that it completed the Versace acquisition after securing all required regulatory approvals. Capri Holdings said it will use the proceeds to significantly reduce debt. CEO John D. Idol added that the repayment will strengthen the company’s financial stability.
Prada Plans Patient Growth Ahead
Prada CEO Andrea Guerra said earlier this year that Versace holds tremendous potential. He emphasized that realizing it will require discipline, long-term planning, and patience.
