Prada is seeking to expand despite the slowdown in luxury demand (Photo: Reuters)
Prada’s US$1.38 billion acquisition of Versace from US-listed Capri Holdings amid the global market turmoil is calculated to bring new customers to the brand known for its minimalist style. “We will provide [Versace] with a strong platform reinforced by years of ongoing investments and rooted in longstanding relationships,” Patrizio Bertelli, the Italian group’s chairman and executive director, said in a statement on April 10. “We are ready and well-positioned to write a new page in Versace’s history.”
In news reports, Prada CEO Andrea Guerra described its deal with Capri Holdings, which also owns Michael Kors and Jimmy Choo, as “a long-term project aimed mainly at expanding revenues rather than cost savings”. Marketing director Lorenzo Bertelli added that there are no overlaps in terms of creativity or customers.
Fashion watchers are waiting to see if Versace, which reported a 6.6% drop in revenues to US$1.03 billion (RM4.56 billion) for the fiscal year ended March 2024, will bring its famed bold, baroque-style prints and dynamic colours to Prada, which is seeking to expand despite the slowdown in luxury demand.
The group posted net revenues of €5.4 billion in 2024, up 17% from the previous year. It attributes this above-market result to “enduring brand relevance and disciplined execution”. Prada’s sister label, Miu Miu, which attracts with its “youthful energy”, had a record year-on-year retail growth of 93%.
Versace has a new chief creative officer in Dario Vitale, whose fashion journey began in 2010 at Miu Miu. He worked for 15 years under Miuccia Prada, whose grandfather founded Milan-based Prada as a leather goods shop in 1913. This month, Vitale succeeds Donatella Versace, who took charge of the eponymous brand founded by her brother Gianni after he was killed by a gunman in 1997.
Luxury Institute founder and CEO Milton Pedraza says the Prada-Versace pact marks “the beginnings of a luxury fashion conglomerate that is Italian-owned and Italian-driven”, a reference to the industry being led by French multinational holding companies.
This article first appeared on Apr 21, 2025 in The Edge Malaysia.
