Prada Completes $1.4 Billion Versace Acquisition: What Comes Next for Italian Luxury

On December 2, 2025, the Prada Group officially completed its long‑planned acquisition of Milanese rival Versace, closing a deal valued at around €1.25–1.3 billion (roughly $1.38–$1.4 billion), depending on how you count enterprise value and final cash adjustments. ^[1]

The transaction unites two of Italy’s most famous fashion houses under one corporate roof: Prada and its youth‑driven sister brand Miu Miu on one side, and Versace, the emblem of maximalist glamour, on the other. It’s being hailed by analysts as a defining moment for Italian luxury—and a direct challenge to French giants like LVMH and Kering. ^[2]

The Deal at a Glance

Who bought what?
Prada is acquiring 100% of Versace from U.S.-listed Capri Holdings in an all‑cash transaction. The original definitive agreement, signed on April 10, 2025, valued Versace at an enterprise value of €1.25 billion ($1.375 billion) on a debt‑ and cash‑free basis, funded largely by €1.5 billion in new debt. ^[3]

As the deal moved from announcement to close, reporting around the final price has framed it as:

€1.25 billion EV, from Prada’s and Capri’s April filings and press releases
About €1.3 billion ($1.5 billion), in coverage drawing on CNN and Reuters ^[4]
$1.375 billion / nearly $1.4 billion, in AP/ABC reporting that focuses on the cash paid at closing ^[5]

In practical terms, this is a mid‑sized luxury takeover—large enough to matter, but nowhere near the mega‑deals that would instantly trigger antitrust alarms.

Timeline

February 2025: Capri puts Versace up for sale after U.S. regulators move to block its planned merger with Tapestry, owner of Coach and Kate Spade. ^[6]
April 10, 2025: Prada and Capri announce the definitive agreement for the sale of Versace. ^[7]
Spring–Autumn 2025: Regulatory review across key markets, including the EU and U.S. ^[8]
December 2, 2025: Prada confirms completion of the acquisition after all regulatory clearances; Versace officially becomes part of the Prada Group. ^[9]

Where Versace fits in Prada’s numbers

When the deal was announced, Prada said that, on a pro‑forma basis, Versace will account for about 13% of group revenues, with the Prada label contributing 64% and Miu Miu around 22%. ^[10]

Those proportions sit on top of a business that has been unusually resilient in a luxury slowdown:

2024 Prada Group revenues: €5.4 billion, up 17% year‑on‑year, driven by a record year at Miu Miu. ^[11]
First nine months of 2025: sales up 9% to €4 billion, marking 19 consecutive quarters of growth. ^[12]

That financial momentum—and the fact that Prada already operates a vertically integrated manufacturing and retail ecosystem—gives it a solid base from which to absorb a struggling Versace.

Why Capri Let Versace Go (and at a Discount)

The sale is striking not just because of who’s buying, but because of how much Capri is accepting.

Capri Holdings bought Versace in 2018 for about $2.0–2.15 billion, including debt. ^[13]
Prada is now paying around €1.25 billion (~$1.38 billion) for the brand—a haircut of roughly one‑third in dollar terms. ^[14]

Behind that markdown is a brand that has been culturally prominent but commercially underpowered:

Versace’s revenues have declined about 15% over the past year and the label has posted consistent revenue and profit losses since Q3 2024, according to Capri’s disclosures and industry reporting. ^[15]
Versace represented around 20% of Capri’s 2024 revenue of €5.2 billion, but with weaker profitability than Michael Kors or Jimmy Choo. ^[16]

Analysts and trade press have tied part of Versace’s slump to an ill‑judged attempt to lean into “quiet luxury,” trimming the more flamboyant, logo‑driven products that made the house famous just as the broader luxury market cooled. ^[17]

Meanwhile, Capri’s own strategic plan—merging with Tapestry to form an American luxury giant—collapsed under U.S. antitrust scrutiny. That left Versace looking more like a saleable asset than the crown jewel of a future super‑group, and the sale proceeds now go largely toward paying down Capri’s debt. ^[18]

Why Prada Wanted Versace So Badly

For Prada, this is not an opportunistic bargain‑hunt; it’s the culmination of a long courtship.

Lorenzo Bertelli—Prada heir, group marketing chief and head of sustainability—has said publicly that Prada was in conversation about acquiring Versace as far back as the COVID‑era, and looked again when Capri’s planned deal with Tapestry fell apart. ^[19]

He’s framed the acquisition around two criteria:

Financially sane (i.e., not a bet‑the‑company gamble), and
Strategically meaningful, thanks to Versace’s ranking among the world’s most recognized luxury brands. ^[20]

Other motivations include:

Complementary aesthetics and audiences. Prada’s reputation for “ugly chic” and intellectual minimalism sits at the opposite pole from Versace’s body‑con glitz and baroque prints, minimizing direct cannibalization across customer bases. ^[21]
Italian scale vs French super‑groups. With Versace alongside Prada and Miu Miu (plus Church’s, Car Shoe, Pasticceria Marchesi and Luna Rossa), the Prada Group starts to look more like an Italian answer to LVMH and Kering—especially important in a year when French luxury has shown vulnerability. ^[22]
Proven transformation playbook. Prada’s revitalization of Miu Miu—where retail sales surged 93% in 2024 and crossed €1 billion—gives management a recent template for turning a high‑awareness but under‑monetized brand into a growth engine. ^[23]

In short: Versace gives Prada a globally famous “volume knob” it can turn up, using the group’s financial strength and industrial backbone.

Versace’s Turnaround Playbook Under Prada

Versace already had a multi‑year turnaround plan sketched out before the sale. At a Capri investor day in February, Versace CEO Emmanuel Gintzburger (who is staying in his role) laid out four priorities: ^[24]

Sharpening house codes (Medusa, baroque prints, sex appeal)
Accessories growth to around $600 million in sales
Footwear growth to about $250 million
Building menswear market share

Analysts also flagged significant potential in fine jewelry, watches and homeware, where Versace’s name recognition far outstrips its current market share. ^[25]

Under Prada, that to‑do list now plugs into a much larger machine:

Vertically integrated manufacturing. Prada has already begun the practical work of folding Versace into its Italian production network, including leather goods factories in Tuscany and elsewhere. The group invested about €60 million in its supply chain in 2025, on top of €200 million between 2019–24, and operates its own artisan academy that has trained hundreds of craftspeople for leather, knitwear and footwear. ^[26]
Distribution and retail discipline. Prada and Miu Miu have moved toward tighter control over wholesale partners and a greater focus on directly operated stores and e‑commerce, a model Versace is expected to emulate more fully once systems are integrated. ^[27]
Milan‑centric operations. Versace’s operations are slated to be pulled closer to Prada’s Milan headquarters and Italian factories, reversing some of the more fragmented footprint that developed under Capri’s ownership. ^[28]

Crucially, Prada executives insist this will be evolution, not revolution. The goal is not to “Prada‑fy” Versace aesthetically, but to support its existing DNA with better operations, products and storytelling. ^[29]

New Power Structure: Lorenzo Bertelli, Emmanuel Gintzburger and Dario Vitale

Governance and strategy

Once integration is complete, Lorenzo Bertelli will become executive chairman of Versace, on top of his roles as group marketing director and sustainability chief. ^[30]

He has signaled that:

No immediate executive shake‑ups are planned
The brand’s underperformance is acknowledged, but its global recognition and cultural cachet justify the investment
Versace will be gradually folded into Prada’s broader industrial and sustainability roadmap

Emmanuel Gintzburger remains CEO, charged with executing the commercial turnaround and delivering on those accessories, footwear and menswear targets.

Creative direction: Dario Vitale’s Versace

The most dramatic change happened even before Prada’s name was on the door: in March 2025, Donatella Versace stepped down as creative chief after nearly three decades, handing the baton to Dario Vitale, formerly design director at Miu Miu. Vitale is the first non‑family member to lead Versace’s creative studio. ^[31]

His debut collection, shown at Milan Fashion Week in September, has been widely described as:

A brightly colored, 1980s‑inflected take on body‑con glamour
Heavy on embellished bras, sharp denim, and power tailoring
Commercially promising, with buyers from retailers like Mytheresa and Dover Street Market calling it a season highlight, even if some critics were more cautious. ^[32]

Price‑wise, Vitale’s Versace is firmly in the luxury bracket, with early trunk‑show data showing:

Belts starting around €900
Special gowns reaching €26,000+. ^[33]

Donatella’s new role

Donatella is not disappearing from the brand. She now serves as global ambassador, fronting campaigns and public storytelling for Versace under Prada’s ownership. ^[34]

Her Instagram post marking the deal’s completion—timed poignantly with Gianni Versace’s birthday—framed the acquisition as a family‑to‑family passing of the torch, sharing an archival photo of Gianni with Miuccia Prada and expressing delight that Versace is joining the Prada family. ^[35]

That emotional messaging is no accident; it helps reassure both Italian fashion insiders and global fans that Versace is moving, not to a faceless conglomerate abroad, but to another family‑anchored Italian group.

What Analysts Say: Short‑Term Margin Pain, Long‑Term Upside

Across December 2 coverage in AP, Reuters, Vogue Business and others, a broad consensus emerges:

Near term: Versace is unprofitable, and turning it around will weigh on Prada’s margins. Morningstar’s Jelena Sokolova has warned of margin pressure in the early years as Prada invests in product, retail, and brand building. ^[36]
Medium to long term: Versace’s “significant untapped growth potential”—Prada’s own phrase—could make the acquisition earnings‑accretive once revenues scale and operations are optimized. ^[37]

Luca Solca, a widely followed luxury analyst at Sanford C. Bernstein, calls Versace “long past its heyday,” but argues that this is precisely what creates both the challenge and the opportunity: make the brand relevant again without diluting its essence. ^[38]

Zooming out, Vogue Business and other industry observers note that fashion M&A in 2025 is less about empire‑building and more about survival and recalibration:

Higher interest rates and cautious consumer spending have made weaker brands vulnerable
Regulators have shown they’re willing to block giant mergers, as in the Tapestry–Capri case
Mid‑sized, targeted deals like Prada–Versace are seen as more palatable—especially when they preserve competition against the largest French groups. ^[39]

Investor watchpoints over the next 12–24 months:

How quickly Versace’s revenues can climb back toward, and beyond, the roughly $1 billion level it approached in 2024 before sliding again. ^[40]
Whether Prada can nudge Versace’s operating margins closer to the group’s ~24% EBIT margin without stripping away the extravagance that justifies premium pricing. ^[41]
Execution risk in integrating supply chains, IT, and store networks without overwhelming Versace’s existing teams.

What Changes for Shoppers?

If you’re a Versace client, the immediate message is: don’t expect an overnight makeover.

Short term (next 6–12 months)

Stores and logo stay. Versace boutiques keep their branding; there’s no Prada x Versace mash‑up in signage or store concepts on the horizon.
Vitale’s first collection, which already created buzz among both buyers and social media audiences, will start landing in stores early 2026 as the first visible product of the new era. ^[42]
Selection may sharpen slowly as the brand doubles down on its strongest categories and signature motifs.

Medium term (2026 and beyond)

Expect more tangible changes:

Better product consistency. Access to Prada’s industrial infrastructure should improve quality control and materials sourcing, especially in leather goods and footwear. ^[43]
More accessories and “entry” items. To hit those €600 million accessories and €250 million footwear targets, the range of bags, shoes and small leather goods will likely expand, giving Versace more exposure in everyday luxury purchases. ^[44]
Pricing and positioning. Vitale’s early price architecture places Versace firmly in the high‑luxury tier; don’t be surprised if prices drift upward over time as craftsmanship and brand heat are rebuilt. ^[45]
More storytelling, less noise. Prada is known for thoughtful narratives around intellect, subversion and design; Versace’s future campaigns under Prada are likely to be just as bold, but more tightly edited and globally consistent.

For consumers, the promise of the deal is a clearer, more confident Versace, still unapologetically sexy and loud—but backed by the discipline and resources of one of the world’s most sophisticated luxury operators.

What It Means for the Luxury Landscape

The Prada–Versace tie‑up lands in a luxury market that is:

Cooling after years of explosive growth
Wrestling with “quiet luxury” fatigue
Facing rising regulatory scrutiny on mega‑mergers and market dominance

With this acquisition, Italy now fields a more credible homegrown luxury group able to stand alongside French and global rivals:

Prada + Miu Miu provide intellectual and youth‑driven fashion
Versace adds cultural theatre and red‑carpet dominance
Church’s, Car Shoe and other assets give depth in footwear and lifestyle. ^[46]

If Prada can successfully re‑ignite Versace without sanding off its edges, the deal could serve as a template for future Italian consolidations—potentially reshaping who sets the agenda in global fashion over the next decade.

Key Dates to Watch After the Closing

Investors, industry insiders and fashion fans will be watching a few big milestones:

February–March 2026: Prada’s next full earnings call, where management can finally discuss Versace’s financial contribution post‑closing. ^[47]
Spring 2026: Vitale’s sophomore Versace collection, the first designed with full knowledge that Prada owns the brand.
2026–27: The pace of Versace store refurbishments and new openings, and any moves in jewelry, watches and homeware. ^[48]

For now, December 2, 2025 will go down as the day a long‑discussed idea finally became reality: minimalist Prada and maximalist Versace, joined not just on a Milan street map, but on the same balance sheet.