In a landmark move that reshapes the landscape of Italian luxury fashion, Prada has acquired Versace for €1.25 billion (approximately US$1.38 billion) from US-listed Capri Holdings. The strategic deal brings together two of Italy’s most iconic fashion houses and signals a bold step toward creating a formidable Italian-owned luxury group.
Despite ongoing global market uncertainty, Prada’s leadership is confident the acquisition will strengthen its brand portfolio and broaden its customer base. “We will provide [Versace] with a strong platform reinforced by years of ongoing investments and rooted in longstanding relationships,” said Patrizio Bertelli, Prada’s chairman and executive director, in a statement issued on April 10. “We are ready and well-positioned to write a new page in Versace’s history.”
Prada CEO Andrea Guerra described the acquisition as a “long-term project” focused on driving revenue growth rather than cost-cutting. Marketing director Lorenzo Bertelli further emphasized that there is no creative or customer overlap between the two brands, maintaining their unique identities under one umbrella.
The acquisition comes at a crucial time for Versace, which reported a 6.6% revenue decline in its most recent fiscal year, closing at US$1.03 billion. Analysts are keen to see how Versace’s signature baroque prints and vibrant colors will evolve under the influence of Prada’s more minimalist aesthetic, especially as the luxury market faces broader demand headwinds.
Meanwhile, Prada posted a strong financial performance in 2024, with net revenues of €5.4 billion, up 17% from the previous year. The company attributes this growth to consistent brand relevance and disciplined business execution. Its sister label Miu Miu experienced an exceptional 93% year-on-year retail growth, driven by its appeal to younger consumers.
The transition also marks a new creative chapter for Versace, as Dario Vitale steps in as chief creative officer, succeeding Donatella Versace. Vitale, who began his fashion career at Miu Miu in 2010, spent 15 years under the mentorship of Miuccia Prada. His appointment adds a full-circle narrative to the merger, linking the creative legacies of both fashion houses.
Luxury Institute founder and CEO Milton Pedraza commented that the deal could herald “the beginnings of a luxury fashion conglomerate that is Italian-owned and Italian-driven,” offering an alternative to the French-dominated corporate structure of global luxury empires.
As the integration begins, the fashion world watches closely to see how this new alliance will shape the future of Italian luxury, potentially setting the stage for a powerful, homegrown counterweight to the French giants dominating the global industry.
Related Topics
- Olivia Lauren Celebrates 20th Anniversary with Artistic Summer Collection in Collaboration with Illustrator Bonirom
- Six Stories Appoints New Head of Brand Amid Rapid Global Growth
- Justin Bieber Unveils New Streetwear Brand ‘Skylrk’ After Parting Ways with Drew House
