Prada Strengthens Its Luxury Holdings
Prada announced on Tuesday that it acquired Versace, uniting 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 expands Prada’s portfolio, which includes Miu Miu, and reinforces its position against rivals like LVMH, owner of Dior, Fendi, and Louis Vuitton.
Versace Enters a New Era
Donatella Versace stepped down in March after 27 years leading the brand with glamorous designs and the iconic Medusa logo. She took over in 1997 after her brother Gianni’s murder and shaped the house for decades. Dario Vitale replaced her, bringing experience from Miu Miu, Prada’s youth-focused luxury label.
Sale Comes Amid Falling Sales
Versace is being sold at a loss of roughly $700m after sales slowed. Capri Holdings also reported weaker performance at other brands, including Michael Kors and Jimmy Choo. Under Capri, Versace moved from ornate designs to a minimalist approach while increasing prices.
Prada Confirms Takeover Completion
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 cut debt significantly. CEO John D. Idol said the repayment will strengthen the company’s financial position.
Prada Eyes Long-Term Growth
Prada CEO Andrea Guerra said earlier this year that Versace has enormous potential. He added that achieving it will require discipline, strategic focus, and patience.
