Prada Expands Its High-End Portfolio
Prada announced on Tuesday that it acquired Versace, uniting two leading 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 rivals such as LVMH, owner of Dior, Fendi, and Louis Vuitton.
Versace Enters a New Phase
Donatella Versace stepped down in March after 27 years shaping 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.
Sale Reflects Slower Sales
Versace is sold at a loss of about $700m after sales declined. Capri Holdings also reported weaker results across its other brands, including Michael Kors and Jimmy Choo. During Capri’s ownership, Versace shifted from ornate designs to minimalist aesthetics while raising prices.
Prada Confirms Acquisition Completion
Prada said in a brief statement that it completed the Versace acquisition after securing all regulatory approvals. Capri Holdings confirmed 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 to Long-Term Growth
Prada CEO Andrea Guerra said earlier this year that Versace holds enormous potential. He added that achieving it will require discipline, careful planning, and patience.
