Prada Strengthens Its Luxury 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 broadens Prada’s portfolio, which includes Miu Miu, and strengthens its position against rivals such as LVMH, owner of Dior, Fendi, and Louis Vuitton.
Versace Enters a New Era
Donatella Versace stepped down in March after 27 years leading the brand with glamorous designs and the iconic Medusa logo. She took control in 1997 following the murder of her brother Gianni and guided the house for decades. Dario Vitale succeeded her, bringing experience from Miu Miu, Prada’s youth-focused luxury label.
Sale Highlights Declining Performance
Versace is sold at a loss of roughly $700m after its 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 aesthetic while raising prices.
Prada Confirms Takeover Completion
Prada stated in a brief announcement that it completed the Versace acquisition after receiving all regulatory approvals. Capri Holdings said 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 Patient 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 execution, and patience.
