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Prada has underscored that Versace offers ‘significant untapped growth potential’
Colleen BarryTuesday 02 December 2025 12:05 GMT
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The fashion world is abuzz as Prada Group finalises its acquisition of Milanese rival Versace in a €1.25bn (£1.10bn) deal, bringing the iconic brand's "sexy silhouettes" under the same roof as Prada's distinctive "ugly chic" and Miu Miu's youthful appeal.
This strategic move is poised to revitalise Versace's fortunes after a period of lacklustre performance.
Prada confirmed the completion of the highly anticipated deal in a brief statement, following all necessary regulatory clearances.
The acquisition marks a significant shift for Versace, which had been part of the US luxury conglomerate Capri Holdings, where it reportedly struggled to maintain its bold profile amidst the rising trend of "quiet luxury."
Lorenzo Bertelli, heir to the Prada empire and currently the group's marketing director and sustainability chief, will take the helm as Versace's executive chairman.
While he has indicated no immediate plans for sweeping executive changes, Mr Bertelli has openly acknowledged the 47-year-old brand's market underperformance, despite its global recognition.
Prada Group Chief Marketing Officer Lorenzo Bertelli (Copyright 2024 The Associated Press. All rights reserved)Prada has underscored that Versace offers "significant untapped growth potential." The brand is already undergoing a creative resurgence under new designer Dario Vitale, whose first collection debuted at Milan Fashion Week in September, a move executives stated was independent of the Prada deal.
Capri Holdings, which also owns Michael Kors and Jimmy Choo, acquired Versace for $2bn in 2018. Versace contributed 20 per cent to Capri Holdings' 2024 revenue of €5.2bn (£4.5bn).
Under the new structure, an analyst presentation suggests Versace will account for 13 per cent of the Prada Group’s pro-forma revenues, with Miu Miu at 22 per cent and the flagship Prada brand at 64 per cent.
The Prada Group, which includes Church’s footwear, saw its revenues jump by 17 per cent to €5.4bn (£4.5bn) last year.
A key strategic element of the acquisition involves integrating Versace into Prada Group's esteemed Italian manufacturing system, a source of considerable pride for the conglomerate.
"Making a bag for one brand or another, the know-how is the same," Mr Bertelli told reporters last week, highlighting the synergy at their Scandicci leather goods factory, which will soon produce for Versace alongside Prada and Miu Miu.
The Prada Group has committed €60m (£52m) to its supply chain this year, including new factories near Siena and Perugia, alongside expanding its Church’s footwear factory in Britain and another Tuscan facility. This builds on €200m( £175m) invested between 2019 and 2024.
Furthermore, Prada's in-house training academy has nurtured 570 new artisans over 25 years across various Italian regions, hiring 70 per cent of its 120 trainees last year, with trainee numbers rising to 152 this year. This robust infrastructure underscores Prada's long-term vision for its expanded portfolio.
