New Delhi, Dec 2 (LatestNewsX) – On Tuesday, the Prada Group announced it had secured a $1.37 billion purchase of the high‑fashion house Versace. With this acquisition, Versace will now fall under the same corporate umbrella as Prada and Miu Miu, uniting several of Italy’s leading style labels.
The transaction ends Versace’s tenure with Capri Holdings, the U.S.‑based luxury conglomerate that had overseen the brand in the post‑pandemic era. Capri stated that the proceeds from the sale will largely be allocated to paying down debt, tightening its balance sheet and enhancing its flexibility for future investment opportunities.
Capri’s Chairman and CEO, John D. Idol, explained that the divestiture will ease the company’s debt load and improve its leverage. He also mentioned that Capri will redirect focus toward expanding its remaining brands, Michael Kors and Jimmy Choo, anticipating a stabilised outlook for the current fiscal year and a return to growth by fiscal 2027.
Versace has grappled with slower retail expansion since 2022, and its early‑2025 results fell short of expectations. Capri highlighted that the label’s sales had not matched the pre‑pandemic momentum.
By joining Prada’s global portfolio—renowned for avant‑garde looks, exceptional tailoring and stringent distribution—Versace will benefit from a refreshed operating structure that could reshape Milan’s luxury scene. Experts suggest the deal may streamline production, logistics and pricing across the three brands, while granting Versace better access to capital and more robust long‑term planning under Prada’s stewardship.
The acquisition is now finalized and is unlikely to trigger additional changes beyond routine post‑closing procedures. Analysts believe the new backing could usher Versace into a growth phase supported by Prada’s financial strength and brand‑building expertise.
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