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In a significant move for the luxury fashion industry, the Prada Group has officially acquired Milan-based rival Versace for €1.25 billion ($2.2 billion). This acquisition combines Versace’s renowned "sexy silhouettes" with Prada’s signature "ugly chic" and Miu Miu’s appeal to younger audiences. The deal comes with high anticipation, aiming to revitalize Versace's fortunes after its lackluster post-pandemic performance under previous owner Capri Holdings.
In a concise statement, Prada confirmed that the acquisition has been finalized, having received all necessary regulatory approvals. With this merger, the iconic Versace brand, which ranks among the top ten most recognized luxury brands globally, is set to enter a new chapter under the guidance of Prada heir Lorenzo Bertelli.
Bertelli has been appointed as executive chairman of Versace while maintaining his roles as group marketing director and sustainability chief. He indicated that he does not foresee making immediate executive changes at Versace, acknowledging the brand’s historical struggle in the market.
Prada, recognizing Versace’s significant untapped growth potential, articulated its confidence in enhancing the brand’s standing.
Under new creative director Dario Vitale, who previously led design at Miu Miu, Versace has been undergoing a creative renewal. Potentially unrelated to the acquisition, Vitale previewed his inaugural collection during Milan Fashion Week in September, signaling a fresh direction for the fashion house.
Capri Holdings, the prior owner which also manages Michael Kors and Jimmy Choo, acquired Versace in 2018 for $2 billion but faced challenges in adapting the brand’s bold aesthetic to a marketplace increasingly dominated by “quiet luxury” trends.
Analysts have noted that while Versace contributed 20 percent to Capri Holdings’ projected revenue of €5.2 billion in 2024, the brand is expected to represent 13 percent of the Prada Group’s pro-forma revenue—a significant shift.
Last year, the Prada Group, which includes Church’s footwear, reported a 17 percent revenue increase to €5.4 billion, demonstrating its robust operational foundation.
The acquisition of Versace reflects a strategic effort to diversify and enhance brand appeal within the high-end market.
