Milan, April 2025 – In a landmark move uniting two of Italy’s most iconic luxury fashion houses, Prada has agreed to acquire Versace for €1.25 billion (approx. A$2.25 billion), according to an official announcement. The deal marks a major shift in the global fashion landscape and is expected to close in the second half of 2025, funded through €1.5 billion in new debt.
Versace, currently owned by Capri Holdings (NYSE: CPRI), has struggled with declining revenues across major markets. Last quarter, it reported a 15% year-over-year revenue drop to US$193 million and a US$21 million operating loss. Its parent company also saw an 11.4% drop in revenue, with Jimmy Choo and Michael Kors also underperforming.
Capri acquired Versace in 2018 for €1.83 billion, initially seeking €3 billion in resale value. However, Prada secured a discounted price, reportedly following the United States’ introduction of new trade tariffs that have shaken global luxury markets.
“We aim to continue Versace’s legacy, reinterpreting its bold aesthetic while providing a strong platform rooted in long-term investment,” said Patrizio Bertelli, Chair of Prada Group.
“Through elevated product and marketing efforts, Versace is now positioned for long-term growth,” added John Idol, CEO of Capri Holdings.
A previous attempt by Tapestry Inc.—owner of Coach and Kate Spade—to acquire Capri for US$8.5 billion in 2024 was blocked by the U.S. Federal Trade Commission, clearing the way for Prada’s offer.
Market Reaction:
- Capri Holdings (NYSE: CPRI): Closed at US$14.63, down from US$16.36
- Prada (SEHK: 1913): Rose to HK$47.85, up from HK$45.60
- Market caps: Capri at US$1.73 billion; Prada at US$122.4 billion
The acquisition underscores Prada’s strategic ambition to consolidate its position in the luxury sector while reviving the fortunes of a legendary brand now facing headwinds.
Prada-and-Versace-Picture-by-heute.at-Creative-Commons-4-0
