Prada Broadens Its Luxury Reach
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 invested in Versace in 2018. The deal expands Prada’s portfolio, which includes Miu Miu, and strengthens its position against rivals such as LVMH, owner of Dior, Fendi and Louis Vuitton.
Versace Enters a Defining New Stage
Donatella Versace stepped down in March after 27 years marked by glamorous designs and the iconic Medusa logo. She assumed leadership in 1997 after the murder of her brother Gianni and shaped the brand for decades. Dario Vitale replaced her and brought experience from Miu Miu, Prada’s youth-focused luxury label.
A Sale Underscored by Heavy Losses
The company is being sold at a loss of about $700m after Versace’s sales weakened. Capri Holdings also saw softer results across its other brands, including Michael Kors and Jimmy Choo. Under Capri’s ownership, Versace moved away from ornate aesthetics and pursued a more minimalist direction while raising prices.
Prada Completes the Takeover
Prada said in a short announcement that it completed the Versace acquisition after receiving all required regulatory approvals. Capri Holdings stated it will use the proceeds to cut its debt significantly. Chief executive John D. Idol said the repayment will strengthen the group’s financial stability.
Prada Outlines a Long-Term Strategy
Prada chief executive Andrea Guerra said earlier this year that Versace has huge potential. He added that the next chapter requires discipline, strategic execution and patience.
