Prada Finalises Versace Deal: What’s Next for the House?

Following six months of waiting for regulatory approval, Prada announced on 2 December that the acquisition of Versace has been successfully completed.

Prada signed a definite agreement in April to buy Versace from Michael Kors and Jimmy Choo owner Capri Holdings, which owned the fashion house since 2018, for about €1.25bn (US$1.45bn), after a previous sale attempt was scrapped.

“We’re ready for this journey,” Prada Group CEO Andrea Guerra told investors on a call following the acquisition announcement.

Lorenzo Bertelli, the son of Prada owners Miuccia Prada and Patrizio Bertelli, announced in November that he will become the Executive Chairman of Versace once Prada's acquisition of the brand is complete, and stated that Prada has been interested in this deal for several years. 

Lorenzo also highlighted that the acquisition is a strategic choice, noting that Versace as a brand is much bigger than its current revenue, and the goal is to bring the business back to the greatness it once had.

He said: “There had already been contacts during the COVID period, 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.”

According to Vogue, analysts say Prada Group will finalise financing agreements, complete closing conditions and formally transfer ownership of the house.

Reviving Versace

Like much of the luxury fashion industry, Versace has taken a hit during the luxury demand decrease, seeing revenue drop by a quarter in the last two years.

According to Capri Holdings, brand revenues declined 15% to US$193m in fiscal 2025.

Before the deal with Prada, at the Capri Holdings investor day in February, Emmanuel Gintzburger said the house’s four key areas of focus are “drilling down on house codes, growing accessories to US$600m, growing footwear to US$250m and building out the men’s market share”.

During the announcement in April, Patrizio Bertelli, Prada Group Chairman and Executive Director, said in a statement: “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.

“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.”

At Business of Fashion’s VOICES conference in November, Andrea said that Versace will complement the Prada brand.

“It’s a brand that was born in culture,” he said. “It’s a brand that was born in classic, historic, Greek, Mediterranean, ancient roots. And on the other side, let’s not forget that Versace has created what we’re seeing every day, this glam, this pop, music, models, supermodels.”

Creative direction

After nearly three decades in the role, the iconic Donatella Versace stepped down as Creative Director at the start of April 2025, announcing she would be handing the role to Dario Vitale, former design director for brand Miu Miu.

Taking over after her brother Gianni’s death, the fashion house’s Founder, Donatella led Versace into new avenues including accessories, hotels and home furnishings.

Discussing her departure on her Instagram, she said it has been “the greatest honour of my life to carry on my brother Gianni’s legacy”.

In a statement at the time, Capri Holdings said Donatella would now “dedicate herself to the support of Versace’s philanthropic and charitable endeavours and will remain an advocate for the brand globally”.

The firm said the appointment is part of a "thoughtful succession plan” and credited Dario as a “strong design leader” whose “talent and vision will be instrumental in Versace’s growth”.

Assisting in leading Versace to growth within Prada Group, Patrizio added in his April statement: “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.”