Prada acquires Versace for $1.4 billion after years of struggle

In early April 2025, the Prada Group announced its acquisition of the Italian fashion house Versace from the U.S. luxury group Capri Holdings for 1.25 billion euros, approximately $1.4 billion. This strategic move places the illustrious brand known for its bold designs and cultural significance under the management of Prada, which also includes brands like Miu Miu. The acquisition was driven by the recognition of Versace's untapped growth potential, as stated by Prada's chief marketing officer, Lorenzo Bertelli, highlighting the brand's strong aesthetic appeal and name recognition in the competitive fashion market. The transaction comes at a time when Capri Holdings has struggled to find a fitting strategy for Versace, especially with shifting consumer preferences toward minimalist designs, often referred to as 'quiet luxury.' Despite this, the Versace brand continues to hold a strong position within the fashion industry, representing a significant portion of Capri Holdings' revenue. In 2018, Capri Holdings had purchased Versace for $2 billion, but under new ownership, Versace is expected to maintain its creative identity while benefiting from Prada's operational expertise. Prada CEO Andrea Guerra emphasized that the acquisition is aimed at supporting sustainable revenue growth without compromising Versace's creative integrity, affirming that no immediate changes to its executive team are planned. The announcement of this acquisition not only strengthens Prada's portfolio but also raises hopes for a rejuvenation of the Versace brand in the luxury fashion landscape. Additionally, Donatella Versace, who has led the brand since her brother Gianni Versace's tragic death in 1997, will continue her involvement as chief brand ambassador. The deal has been met with optimism from various stakeholders, including the Italian government, which sees this transition as a way to secure the future of a historic Italian brand in an industry that has faced challenges with foreign ownership. Adolfo Urso, Italy's Industry Minister, referred to the acquisition as a significant event for the country's renowned fashion heritage, underlining the importance of keeping iconic Italian brands within domestic stewardship. Through this acquisition and the strategies outlined by Prada, the industry is on alert for how Versace will evolve under its new ownership, aiming to capitalize on previously unexplored opportunities for growth and success.