After six months of awaiting regulatory approval, Prada Group has officially acquired Versace in a $1.25 billion deal that strategically links two of Italy’s most culturally significant labels, Prada Group announced today.
“We’re ready for this journey,” Prada Group chief executive officer Andrea Guerra told investors on a call following Prada’s acquisition announcement in April. Prada Group scion and head of corporate social responsibility, Lorenzo Bertelli, will become executive chair of the house.
From here, Prada Group will finalize financing agreements, complete closing conditions (legal contracts), and formally transfer ownership, analysts say. Then, the real work begins at Versace, as Prada Group takes on a house steeped in history and entrenched in popular culture that has lost its way commercially in recent years. Here’s what we expect to come.
A Versace turnaround
Versace has faced serious financial headwinds over the last five years. Brand revenues declined 15% to $193 million in fiscal 2025, former Versace owner Capri Holdings reported. In fact, the label has posted quarterly revenue and profit losses since Q3 2024. Capri Holdings put the brand up for sale in February, after a Capri-Tapestry merger was rejected by the US Federal Trade Commission.
Following speculation around who would buy Versace, Prada announced its plans to acquire the house in April 2025. Upon the acquisition announcement, Prada Group’s Guerra explained that the goal is “sustainable revenue growth in the long term”.
This will take work, analysts agree. “Versace is a big name, but still a relatively small business that should be bigger,” said Neil Saunders, managing director of Globaldata’s US retail division, when musing on a to-do list for the brand’s next owner.
At the Capri Holdings investor day in February, before the sale, Versace CEO Emmanuel Gintzburger — who remains in-post — said the label’s four key focus areas are “drilling down on house codes, growing accessories to $600 million, growing footwear to $250 million and building out the men’s market share”. Analysts also see potential in new categories like fine jewelry, watches and homeware.
Prada Group — which operates brands including Prada, Miu Miu and Church’s — is one of few luxury companies to largely weather the luxury slowdown, and could be well placed to strengthen Versace’s business. Group sales rose 9% year-on-year to €4 billion in the first nine months of 2025, ended September 30. And while several key luxury conglomerates have posted sales declines over the last two years, Prada Group has reported 19 consecutive quarters of growth.
