Prada Strengthens Its Luxury Portfolio
Prada announced on Tuesday that it acquired Versace, uniting two major Italian fashion houses under one roof. The company paid $1.38bn, well below the roughly $2bn Capri Holdings spent on Versace in 2018. The deal expands Prada’s portfolio, which includes Miu Miu, and reinforces its position against rivals such as LVMH, owner of Dior, Fendi, and Louis Vuitton.
Versace Begins 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 the murder of her brother Gianni and guided the house for decades. Dario Vitale succeeded her, bringing experience from Miu Miu, Prada’s youth-focused luxury label.
Sale Highlights Slowing Sales
Versace is sold at a loss of about $700m after its sales slowed. Capri Holdings also reported weaker results from other brands, including Michael Kors and Jimmy Choo. Under Capri, Versace moved from ornate designs to minimalist aesthetics while raising prices.
Prada Confirms Completion of Deal
Prada stated in a brief announcement that it completed the Versace acquisition after securing 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 Looks to Long-Term Growth
Prada CEO Andrea Guerra said earlier this year that Versace has enormous potential. He added that achieving it will require discipline, careful planning, and patience.
