MILAN \u2014 The Prada Group announced Tuesday that it has officially purchased Milan fashion rival Versace in a 1.25 billion euro (nearly $1.4 billion) deal that puts the fashion house known for its sexy silhouettes under the same roof as Prada\u2019s \u201cugly chic\u201d aesthetic and Miu Miu\u2019s youth-driven appeal.<\/p>\n
The highly anticipated deal is expected to relaunch Versace\u2019s fortunes, after middling post-pandemic performance as part of the U.S. luxury group Capri Holdings.<\/p>\n
Prada said in a one-line statement that the acquisition had been completed after receiving all regulatory clearances.<\/p>\n
Prada heir Lorenzo Bertelli will steer Versace\u2019s next phase as executive chairman, in addition to his roles as group marketing director and sustainability chief.<\/p>\n
The son of co-creative director Miuccia Prada and longtime Prada Group chairman Patrizio Bertelli has said he doesn\u2019t expect to make any swift executive changes at Versace. But Bertelli has said that the company, which places among the top 10 most recognized brands in the world, has long been underperforming in the market.<\/p>\n
Prada has underlined that the 47-year-old Versace brand offered \u201csignificant untapped growth potential.\u2019\u2019<\/p>\n
Versace has been in the midst of a creative relaunch under a new designer, Dario Vitale, who previewed his first collection during Milan Fashion Week in September. He had previously been head of design at Miu Miu, but his move to Versace was unrelated to the Prada deal, executives have said.<\/p>\n
Capri Holdings, which owns Michael Kors and Jimmy Choo, paid $2 billion for Versace in 2018, but had been struggling to position Versace\u2019s bold profile in the recent era of \u201cquiet luxury.\u2033<\/p>\n
Versace represented 20% of Capri Holdings 2024 revenue of 5.2 billion euros. An analyst presentation for the Prada deal said that Versace would represent 13% of the Prada Group\u2019s pro-forma revenues, with Miu Miu coming in at 22% and Prada at 64%. The Prada Group, which also includes Church\u2019s footwear, reported a 17% boost in revenues to 5.4 billion euros last year.<\/p>\n
The Prada Group has already begun preparations to incorporate crosstown rival Versace into its Italian manufacturing system, a point of pride for the group.<\/p>\n
\u201cMaking a bag for one brand or another, the know-how is the same,\u2033 Bertelli told reporters last week at the group\u2019s Scandicci leather goods factory, which already makes bags for the Prada and Miu Miu brands and will soon add Versace.<\/p>\n
The Prada Group\u2019s has invested 60 million euros in its supply chain this year, including a new leather goods factory near Siena, a new knitwear factory near Perugia as well as increasing production at its factory Church\u2019s footwear factory in Britain and expanding another Tuscan factory. That\u2019s on top of 200 million euros in investments from 2019-24.<\/p>\n
Prada\u2019s efforts include an academy that has trained some 570 new artisans over the last 25 years in an in-house training academy operating in the Tuscany, Marche, Veneto and Umbria regions.<\/p>\n
Last year, Prada hired 70% of the 120 artisans who trained in the academy. The number of trainees rose by 28% to 152 this year.<\/p>\n<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
MILAN \u2014 The Prada Group announced Tuesday that it has officially purchased Milan fashion rival Versace in a 1.25 billion euro (nearly $1.4 billion) deal that puts the fashion house known for its sexy silhouettes under the same roof as Prada\u2019s \u201cugly chic\u201d aesthetic and Miu Miu\u2019s youth-driven appeal. The highly anticipated deal is expected…<\/p>\n","protected":false},"author":1,"featured_media":5045,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5044","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/thetradingdictionary.com\/index.php\/wp-json\/wp\/v2\/posts\/5044","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thetradingdictionary.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thetradingdictionary.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thetradingdictionary.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thetradingdictionary.com\/index.php\/wp-json\/wp\/v2\/comments?post=5044"}],"version-history":[{"count":0,"href":"https:\/\/thetradingdictionary.com\/index.php\/wp-json\/wp\/v2\/posts\/5044\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thetradingdictionary.com\/index.php\/wp-json\/wp\/v2\/media\/5045"}],"wp:attachment":[{"href":"https:\/\/thetradingdictionary.com\/index.php\/wp-json\/wp\/v2\/media?parent=5044"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thetradingdictionary.com\/index.php\/wp-json\/wp\/v2\/categories?post=5044"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thetradingdictionary.com\/index.php\/wp-json\/wp\/v2\/tags?post=5044"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}