Prada Expands Its Luxury Portfolio
Prada announced on Tuesday that it acquired Versace, uniting two major Italian fashion houses 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 boosts its position against competitors like LVMH, owner of Dior, Fendi, and Louis Vuitton.
Versace Begins a New Era
Donatella Versace stepped down in March after 27 years leading the brand with glamorous designs and the iconic Medusa logo. She assumed control in 1997 following the murder of her brother Gianni and guided the house for decades. Dario Vitale succeeded her, bringing experience from Miu Miu, Prada’s youth-focused luxury label.
Sale Reflects Slowing Sales
Versace is being sold at a loss of approximately $700m after sales declined. Capri Holdings also reported weaker performance from other brands, including Michael Kors and Jimmy Choo. Under Capri’s ownership, Versace moved away from ornate designs toward a minimalist aesthetic while raising prices.
Prada Confirms Acquisition Completion
Prada stated in a short announcement that it completed the Versace acquisition after securing all required 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 Outlines Long-Term Vision
Prada CEO Andrea Guerra said earlier this year that Versace holds huge potential. He added that realizing it will require discipline, careful execution, and patience.
