Prada Strengthens Its Luxury Portfolio
Prada announced on Tuesday that it acquired Versace, bringing two major Italian fashion houses under one roof. The company paid $1.38bn, well below the roughly $2bn Capri Holdings spent on Versace in 2018. The deal broadens Prada’s brand portfolio, which includes Miu Miu, and reinforces its position against rivals such as LVMH, owner of Dior, Fendi, and Louis Vuitton.
Versace Enters a New Phase
Donatella Versace stepped down in March after 27 years leading the brand with glamorous designs and the iconic Medusa logo. She assumed control in 1997 after her brother Gianni’s murder and shaped the house for decades. Dario Vitale succeeded her, bringing expertise from Miu Miu, Prada’s youth-focused luxury label.
Sale Comes Amid Weakening Performance
Versace is sold at a loss of roughly $700m after sales declined. Capri Holdings also faced weaker results from its other brands, including Michael Kors and Jimmy Choo. Under Capri’s ownership, Versace moved from ornate designs to a minimalist aesthetic while raising prices.
Prada Confirms Completion of the Acquisition
Prada said in a short statement that it completed the Versace acquisition after securing all necessary 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 Eyes Long-Term Growth for Versace
Prada CEO Andrea Guerra said earlier this year that Versace has huge potential. He added that realizing it will require discipline, careful execution, and patience.
