Prada Expands Its Luxury Holdings
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 invested in Versace in 2018. The acquisition strengthens Prada’s portfolio, which includes Miu Miu, and enhances 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 over in 1997 after 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 Reflects Weakening Sales
Versace is sold at a loss of about $700m after declining sales. Capri Holdings also faced weaker results from 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 Takeover Completion
Prada stated in a brief announcement that it completed the Versace acquisition after securing 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 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 execution, and patience.
