Prada Expands Its Designer Portfolio
Prada announced on Tuesday that it acquired Versace, uniting two major Italian fashion houses under one roof. The company paid $1.38bn, far below the roughly $2bn Capri Holdings invested in Versace in 2018. The acquisition strengthens Prada’s portfolio, which includes Miu Miu, and reinforces its position against competitors such as LVMH, owner of Dior, Fendi, and Louis Vuitton.
Versace Embarks on 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 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.
Sale Reflects Slower Growth
Versace is sold at a loss of around $700m after declining sales. Capri Holdings also saw weaker results from other brands, including Michael Kors and Jimmy Choo. Under Capri, Versace shifted from ornate designs to minimalist aesthetics while raising prices.
Prada Confirms Acquisition Completion
Prada said in a short statement that it completed the Versace acquisition after securing all regulatory approvals. Capri Holdings confirmed it will use the proceeds to cut debt significantly. CEO John D. Idol said the repayment will strengthen the company’s financial position.
Prada Plans Long-Term Strategy
Prada CEO Andrea Guerra said earlier this year that Versace has enormous potential. He added that realizing it will require discipline, careful execution, and patience.
