Prada Completes Purchase Of Versace For $1.4 Billion

It turns out luxury brands are into consolidation, too.

Prada has officially completed its acquisition of another major Italian fashion imprint, Versace.

American-based Capri Holdings previously owned Versace, but in April, they signed a definitive agreement to sell it to Prada for about $1.4 billion. Capri Holdings—which owns Michael Kors and Jimmy Choo—took a loss after paying $2 billion for Versace in 2018, but struggled with sales.

While the agreement dates back to earlier this year, thanks to delayed regulatory approval, Lorenzo Bertelli, the son of Prada owners Miuccia Prada and Patrizio Bertelli, tells Reuters that the courtship has been ongoing for much longer.

“There had already been contacts during the COVID period, and there were talks even before Capri’s sale to Tapestry. When that deal fell through over antitrust issues, we came back and tried to speed things up,” Bertelli said. “It was something that had been in the works for a long time.”

Bertelli now rises as the executive chairman, in what’s already been a period of change for Versace.

“We are delighted to welcome Versace to the Prada Group and to build a new chapter for a brand with which we share a strong commitment to creativity, craftsmanship, and heritage,” Bertelli said in a statement. “We aim to continue Versace’s legacy celebrating and re-interpreting its bold and timeless aesthetic; at the same time, we will provide it with a strong platform, reinforced by years of ongoing investments and rooted in longstanding relationships. Our organisation is ready and well positioned to write a new page in Versace’s history, drawing on the Group’s values while continuing to execute with confidence and rigorous focus.”

Right before news of the sale broke, Versace’s creative chief and most front-facing employee, Donatella Versace, stepped down. Her role was filled by Dario Vitale, who left his post as design director at Miu Miu.

The move only makes the Prada group’s stronghold in the luxury market even tighter as their roster now includes sister brand Miu Miu, Church’s, Car Shoe, Versace, and restaurants Pasticceria Marchesi and Luna Rossa.

Hopefully, the new acquisitions can kick sales into a higher gear, as they have been operating at a loss quarterly since Q3 2024. Plus, in fiscal 2025, the revenue declined to fall 15% to $193 million, and before Capri sold it, they forecasted it would drop to $800 million in 2026.