Prada Strengthens Its Luxury Portfolio
Prada announced on Tuesday that it acquired Versace, uniting two leading Italian fashion houses under one roof. The company paid $1.38bn, well below the roughly $2bn Capri Holdings spent on Versace in 2018. The acquisition broadens Prada’s portfolio, which includes Miu Miu, and boosts its position against rivals such as LVMH, owner of Dior, Fendi, and Louis Vuitton.
Versace Steps Into 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 following the murder of her brother Gianni and shaped the house for decades. Dario Vitale succeeded her, bringing experience from Miu Miu, Prada’s youth-focused luxury label.
Sale Highlights Slowing Performance
Versace is sold at a loss of about $700m after sales slowed. Capri Holdings also reported weaker results from other brands, including Michael Kors and Jimmy Choo. Under Capri, Versace moved from ornate designs toward a minimalist style while raising prices.
Prada Confirms Acquisition Completion
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 cut debt significantly. CEO John D. Idol said the repayment will strengthen the company’s financial position.
Prada Eyes Long-Term Growth
Prada CEO Andrea Guerra said earlier this year that Versace carries huge potential. He added that achieving it will require discipline, careful planning, and patience.
