Prada Expands Its Luxury Footprint
Prada announced on Tuesday that it acquired Versace, bringing two major Italian fashion houses together under one roof. The company paid $1.38bn, far below the roughly $2bn Capri Holdings invested in Versace in 2018. The acquisition broadens Prada’s portfolio, which includes Miu Miu, and strengthens its position against rivals such as LVMH, owner of Dior, Fendi, and Louis Vuitton.
Versace Enters a Transformative Phase
Donatella Versace stepped down in March after 27 years leading the brand with glamorous designs and the iconic Medusa logo. She took charge in 1997 after her brother Gianni’s murder and shaped the house for decades. Dario Vitale succeeded her, bringing experience from Miu Miu, Prada’s youth-focused luxury label.
The Sale Reflects Slowing Performance
Versace is sold at a loss of about $700m after its sales declined. Capri Holdings also saw weaker results from other brands, including Michael Kors and Jimmy Choo. Under Capri’s ownership, Versace shifted from ornate designs toward a minimalist style while raising prices.
Prada Confirms Takeover Completion
Prada stated in a brief announcement that it completed the Versace acquisition after receiving all regulatory approvals. Capri Holdings said it will use the proceeds to reduce debt significantly. CEO John D. Idol said the repayment will strengthen the company’s financial position.
Prada Looks Ahead With Patience
Prada CEO Andrea Guerra said earlier this year that Versace holds enormous potential. He added that achieving it will require discipline, strategic focus, and patience.
