Prada Acquires Versace at a Substantial Discount

Fri Dec 05 2025 10:30:40 GMT+0200 (Eastern European Standard Time)

In a surprising move, Italian fashion powerhouse Prada has acquired luxury brand Versace for $1.38 billion, significantly less than its previous valuation. This acquisition marks a new chapter for both brands in the competitive luxury fashion market.

Prada has successfully purchased Versace for $1.38 billion, well below the $2 billion acquired by Capri Holdings in 2018. This strategic acquisition aims to strengthen Prada's portfolio and enhance its competitive positioning against rivals such as LVMH. Key leadership changes at Versace coincide with the sale, further shifting the brand's creative direction.

Italian fashion giant Prada has officially acquired fellow luxury brand Versace in a deal valued at $1.38 billion (£1.04 billion), which is substantially lower than the nearly $2 billion that Versace's previous parent company, Capri Holdings, invested in the luxury label back in 2018.

This acquisition ensures that both iconic brands are now under the same umbrella as Prada looks to expand its portfolio, which also includes the popular Miu Miu. Prada aims to bolster its competitive edge against prominent luxury rivals, such as the French luxury conglomerate LVMH, which owns notable names like Dior and Fendi.

Donatella Versace, who has been synonymous with the brand's creative direction for 27 years, recently stepped down from her role, marking a significant change for the fashion house renowned for its opulent styles and the distinct Medusa head logo. Her departure followed changes in design philosophy under Capri Holdings that shifted Versace's ornate aesthetics to more minimalist approaches, affecting its market position and sales.

The sale comes with a notable financial impact for Capri Holdings as it incurs a loss of roughly $700 million on the sale due to Versace’s underwhelming revenue performance.

New leadership at Versace includes Dario Vitale, who previously directed designs for Miu Miu, reflecting a strategy shift aimed at revitalizing the brand's image and appeal.

Prada confirmed the acquisition has received all necessary regulatory approvals, allowing it to proceed with its plans for Versace.

Capri Holdings' CEO, John Idol, stated that the company intends to use the proceeds from the sale to significantly reduce its debt, thereby strengthening its overall financial position.

Andrea Guerra, CEO of Prada, expressed optimism regarding Versace's future potential, highlighting the long-term vision necessary for successful integration and brand revitalization.