Prada Strengthens Its Luxury Empire
Prada announced on Tuesday that it acquired Versace, bringing 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 broadens Prada’s portfolio, which includes Miu Miu, and bolsters its position against rivals like LVMH, owner of Dior, Fendi, and Louis Vuitton.
Versace Begins a New Chapter
Donatella Versace stepped down in March after 27 years at the helm, shaping the brand with glamorous designs and the iconic Medusa logo. She took over in 1997 following her brother Gianni’s murder and led the house for decades. Dario Vitale replaced her, bringing experience from Miu Miu, Prada’s youth-focused luxury label.
Sale Comes Amid Falling Sales
Versace is being sold at a loss of about $700m after sales slowed. Capri Holdings also reported weaker performance across other brands, including Michael Kors and Jimmy Choo. Under Capri’s ownership, Versace shifted from ornate designs to minimalist styles while raising prices.
Prada Confirms Completion of Acquisition
Prada said in a brief statement that it completed the Versace acquisition after receiving 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 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 planning, and patience.
