On December 2, the Prada Group announced that it has officially completed its acquisition of Versace from U.S.-based Capri Holdings. The deal, valued at €1.25 billion on an enterprise-value basis, successfully closed after all necessary regulatory approvals, around six months after the agreement was first announced in April.
Prada Group CEO Andrea Guerra emphasized from the outset that “we are ready for this journey,” underscoring the group’s long-term commitment to revitalizing the storied Italian house. It has also been confirmed that Lorenzo Bertelli, the group’s designated successor and head of corporate social responsibility, will assume the role of executive chair at Versace.
Structural Reform Ahead for Versace
Founded in Milan in 1978, Versace has long been recognized as a symbol of Italian luxury, known for its bold brand codes and cultural influence. However, the brand has faced serious financial headwinds in recent years.
According to Capri Holdings, Versace’s revenue fell 15 percent year-on-year to $193 million in fiscal 2025. Both sales and profits continued to decline quarter-over-quarter from the third quarter of 2024, making a full-scale turnaround imperative.
Compounding the situation, Capri’s planned merger with Tapestry was blocked by the U.S. Federal Trade Commission, prompting the company to decide in February 2025 to put Versace up for sale. While multiple bidders emerged, Prada Group ultimately secured control of the brand.
With this acquisition, Prada Group is expected to steer several long-standing strategic priorities for Versace, including:
- Reinforcing the brand’s core codes
- Expanding the accessories business
- Growing the menswear category
- Elevating the brand’s presence in the high-luxury segment
A New Versace Under Dario Vitale
In March 2025, Dario Vitale succeeded Donatella Versace as the brand’s new chief creative officer—the first non-family member to lead the house creatively.
Vitale’s debut collection, unveiled during Milan Fashion Week in September, reimagined 1980s aesthetics through vivid denim, embellished bras, and sharply contoured silhouettes. The runway received widespread acclaim and quickly became one of the most talked-about collections of the season, signaling strong momentum for the brand’s new chapter.
Integration into Prada’s Italian Manufacturing Network
Prada Group is now preparing to integrate Versace into its Italian manufacturing network. At the group’s Scandicci academy, master artisans train daily in advanced leather craftsmanship—a knowledge base expected to flow directly into Versace’s product development.
This integration is anticipated to improve multiple aspects of Versace’s operations, including manufacturing quality, production stability, and cost efficiency.
Strategic Importance for Prada Group
With the addition of Versace, Prada Group strengthens its brand portfolio alongside Prada, Miu Miu, and Church’s. The combination of brands with distinctly different identities and cultural backgrounds enables Prada to build a “non-overlapping portfolio,” providing a strategic advantage over competitors.
Although short-term margin pressure is inevitable due to Versace’s current financial performance, the long-term outlook remains promising. If Versace succeeds in restoring both its cultural influence and commercial strength, this acquisition will likely be remembered as a landmark decision—not only for Prada Group but for the Italian luxury industry as a whole.
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