Prada Expands Its Luxury Empire
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 spent on 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 shaping the brand with glamorous designs and the iconic Medusa logo. She took control in 1997 following 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 Comes Amid Slower Sales
Versace is sold at a loss of about $700m after sales declined. Capri Holdings also reported weaker performance from other brands, including Michael Kors and Jimmy Choo. Under Capri, Versace moved from ornate designs to minimalist aesthetics 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 reduce debt significantly. CEO John D. Idol said the repayment will strengthen the company’s financial position.
Prada Plans Long-Term Growth
Prada CEO Andrea Guerra said earlier this year that Versace holds huge potential. He added that realizing it will require discipline, careful execution, and patience.
