Editor’s Note
This article discusses Prada Group’s €1.25 billion acquisition of Versace, a major consolidation of two iconic Italian fashion houses. The deal, finalized after a six-month regulatory review, marks a significant strategic shift for the luxury sector.
After six months of awaiting regulatory approval, Prada Group has officially acquired Versace in a €1.25 billion deal that strategically links two of Italy’s most culturally significant labels, Prada Group announced today.
From here, Prada Group will finalize financing agreements, complete closing conditions (legal contracts), and formally transfer ownership, analysts say. Then, the real work begins at Versace, as Prada Group takes on a house steeped in history and entrenched in popular culture that has lost its way commercially in recent years.
Versace has faced serious financial headwinds over the last five years. Brand revenues declined 15% to $193 million in fiscal 2025, former Versace owner Capri Holdings reported. In fact, the label has posted quarterly revenue and profit losses since Q3 2024. Capri Holdings put the brand up for sale in February, after a Capri-Tapestry merger was rejected by the US Federal Trade Commission.
Following speculation around who would buy Versace, Prada announced its plans to acquire the house in April 2025. Upon the acquisition announcement, Prada Group’s Guerra explained that the goal is “sustainable revenue growth in the long term”.
At the Capri Holdings investor day in February, before the sale, Versace CEO Emmanuel Gintzburger — who remains in-post — said the label’s four key focus areas are “drilling down on house codes, growing accessories to $600 million, growing footwear to $250 million and building out the men’s market share”. Analysts also see potential in new categories like fine jewelry, watches and homeware.
Prada Group — which operates brands including Prada, Miu Miu and Church’s — is one of few luxury companies to largely weather the luxury slowdown, and could be well placed to strengthen Versace’s business. Group sales rose 9% year-on-year to €4 billion in the first nine months of 2025, ended September 30. And while several key luxury conglomerates have posted sales declines over the last two years, Prada Group has reported 19 consecutive quarters of growth.
Prada’s operational and creative capabilities and its Italian roots make it a strong company to steer Versace in the right direction.
The cost of the turnaround will impact Prada in the short term, however, analysts agree.
Many analysts tentatively inquired about the effect of the acquisition on Prada’s bottom line, in the group’s recent earnings call, but executives were unable to comment until the completion of the sale. Based on previous years, Prada’s next earnings call should take place in March 2026, providing further clarity on the outlook.
Strategically, analysts hope Prada will re-establish Versace’s authority, with a focus on strong, high-end ready-to-wear. Following the appointment of chief creative officer Dario Vitale in March 2025, that could be on track. Vitale was hired shortly before the Prada Group sale in April, replacing Donatella Versace as the first non-family member to helm the house. His powerful first outing was one of the most talked-about debuts of the season, perhaps only overshadowed on the final day of Paris Fashion Week by Matthieu Blazy’s Chanel.
The collection, an ’80s fever dream of tight, brightly colored denim and separates, embellished bras and waistcoats (already spotted on the likes of Addison Rae), was declared a season highlight by almost every buyer interviewed by Vogue Business at the end of fashion month, from Mytheresa to Dover Street Market. Vitale’s Versace is also positioned firmly in the luxury category, with pieces ranging from €900 for belts to over €26,000 for special gowns, based on early insights from the Moda Operandi trunk show. And while one collection alone cannot save a brand, there’s strong momentum behind Vitale’s vision as Versace launches into its next chapter.