Everything You Need to Know About Prada Acquiring Versace
Prada Group has officially acquired Versace from Capri Holdings—the American parent company behind Michael Kors and Jimmy Choo—for $1.4 billion in an all-cash deal.
Everything You Need to Know About Prada Acquiring Versace
It feels as though the fashion industry has been caught in a storm that just won’t calm- from creative directors stepping down or switching houses, to Gucci debuting a full ready-to-wear collection without one at all. Now, Prada, the iconic Italian quiet luxury label, has made waves by acquiring its louder younger sibling: Versace. Here’s everything you need to know about Prada’s newest power move.
Prada Group has officially acquired Versace from Capri Holdings—the American parent company behind Michael Kors and Jimmy Choo—for $1.4 billion in an all-cash deal. The sale comes after a rough Q4 for Versace, where revenue dropped 15% to $193 million, allowing Prada to purchase the brand for $700 million less than its 2018 valuation.
With Versace now under its umbrella—alongside Miu Miu and Church’s—Prada is tightening its grip on the global luxury race, setting its sights on French giants LVMH and Kering. The contrast between Versace’s high-octane glamour and Prada’s quiet luxury creates a sharp edge, especially with Versace’s strength in the West and Prada’s dominance in Asia.
What’s Next For Versace?
While the company will maintain its own unique identity within the Prada Group family, Donatella Versace, the figurehead of the brand, has stepped down as creative director and has been replaced by Dario Vitale, the Italian designer who has worked quietly behind the scenes of major fashion brands like Bottega Veneta, Dsquared2, and Miu Miu—until now. However, Donatella Versace isn’t walking away from Versace just yet and will continue to be a part of the brand’s future, serving as Chief Brand Ambassador.
From Whisper to Power Play: Prada’s Possible Strategy Unpacked
Many questions remain unanswered and open to public scrutiny—chief among them: are these brands truly compatible? Their stark differences in brand messaging and aesthetic raise concern over Prada’s ability to successfully integrate Versace while keeping brand dilution and internal conflict at bay. Will Prada Group shift their energy towards Versace in an effort to restore and rebuild the brand, straining their resources and neglecting their other brands, which could subject them to stunts in their growth? Will Versace be able to maintain their brand’s identity and iconic legacy after Donatella Versace steps down as Creative Director?