Prada Expands Its Luxury Empire
Prada announced on Tuesday that it acquired Versace, bringing 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 enhances its position against rivals like LVMH, owner of Dior, Fendi, and Louis Vuitton.
Versace Enters a New Chapter
Donatella Versace stepped down in March after 27 years leading the brand with glamorous designs and the iconic Medusa logo. She took over 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.
Sale Comes Amid Slowing Sales
Versace is being sold at a loss of about $700m after its sales declined. Capri Holdings also reported weaker performance 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 Deal Completion
Prada stated in a brief announcement that it completed the Versace acquisition after receiving all regulatory approvals. Capri Holdings confirmed it will use the proceeds to significantly reduce debt. CEO John D. Idol said the repayment will strengthen the company’s financial stability.
Prada Plans a Patient Growth Strategy
Prada CEO Andrea Guerra said earlier this year that Versace holds enormous potential. He added that achieving it will require discipline, long-term planning, and patience.
