Prada Strengthens Its Luxury Lineup
Prada announced on Tuesday that it acquired Versace and united two major Italian fashion houses under one roof. The company paid $1.38bn, far below the roughly $2bn that Capri Holdings spent on Versace in 2018. The deal broadens Prada’s brand portfolio, which includes Miu Miu, and boosts its position against rivals like LVMH, owner of Dior, Fendi and Louis Vuitton.
A Turning Point for Versace
Donatella Versace stepped down in March after 27 years as creative chief, known for bold glamour and the Medusa logo. She assumed control in 1997 after the murder of her brother Gianni and shaped the house for decades. Dario Vitale replaced her and brought his experience from Miu Miu, Prada’s youth-focused luxury label.
A Sale Driven by Slowing Sales
The deal comes with a loss of about $700m after Versace’s sales slowed. Capri Holdings also faced weaker numbers from Michael Kors and Jimmy Choo. Under Capri’s ownership, Versace shifted from ornate designs toward a minimalist trend while raising prices.
Prada Finalises the Acquisition
Prada said in a short statement that it completed the Versace acquisition after receiving all necessary regulatory approvals. Capri Holdings confirmed that it will use proceeds from the sale to cut its debt significantly. Chief executive John D. Idol said the repayment will strengthen the company’s financial position.
Prada Looks Ahead With Confidence
Prada chief executive Andrea Guerra said earlier this year that Versace has huge potential. He added that the next phase will require discipline, long-term focus and patience.
