Prada Expands Its Luxury Empire
Prada announced on Tuesday that it acquired Versace, bringing two major Italian fashion houses under one roof. The company paid $1.38bn, far below the roughly $2bn Capri Holdings spent on Versace in 2018. The acquisition broadens Prada’s portfolio, which includes Miu Miu, and strengthens its position against rivals such as LVMH, owner of Dior, Fendi, and Louis Vuitton.
Versace Steps Into a New Chapter
Donatella Versace stepped down in March after 27 years leading the brand with glamorous designs and the iconic Medusa logo. She took control in 1997 following her brother Gianni’s murder and shaped the house for decades. Dario Vitale succeeded her, bringing experience from Miu Miu, Prada’s youth-focused luxury label.
Sale Reflects Slower Sales Performance
Versace is sold at a loss of roughly $700m after its sales declined. Capri Holdings also reported weaker results from other brands, including Michael Kors and Jimmy Choo. Under Capri’s ownership, Versace shifted from ornate designs to minimalist aesthetics while raising prices.
Prada Confirms Completion of Acquisition
Prada said in a brief statement that it completed the Versace acquisition after receiving 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 Plans Long-Term Growth Strategy
Prada CEO Andrea Guerra said earlier this year that Versace carries huge potential. He added that realizing it will require discipline, careful planning, and patience.
