New Delhi: The Prada Group on Tuesday announced that it has officially acquired luxury fashion label Versace in a deal worth $1.37 billion. Following this acquisition, Versace will operate alongside Prada and Miu Miu, uniting some of Italy’s most influential fashion brands under a single umbrella.

Why did Capri holdings sell Versace?

The acquisition marks the end of Versace’s ownership under Capri Holdings, the US-based luxury group that had managed the brand through the post-pandemic years. Capri Holdings stated that the funds from the sale will be used to repay most of its debt, thereby strengthening the company’s financial position and providing greater flexibility for future investments.

John D. Idol, Chairman and CEO of Capri Holdings, said the sale would help reduce the company’s debt burden and improve its leverage ratio. He added that Capri Holdings will now concentrate on growing its remaining brands, Michael Kors and Jimmy Choo, and expects the company to stabilise this year and return to growth by fiscal 2027.

How has Versace performed recently?

Versace has faced challenges in recent years, with retail growth slowing after 2022 and a mixed performance in early 2025. Capri Holdings noted in its filings that Versace’s sales did not meet expectations compared with pre-pandemic momentum.

What does this mean for Prada’s portfolio?

With the acquisition, Versace will join Prada’s global portfolio, which is recognised for experimental fashion, strong tailoring, and selective distribution. Industry observers suggest that the deal could streamline manufacturing, distribution, and pricing strategies across the brands.

Could Versace see a revival under Prada?

Experts believe that the acquisition could help Versace revive its performance, providing better access to capital and stronger long-term planning under Prada’s management. Market analysts also predict that the new ownership might enable Versace to enter a fresh growth phase, backed by Prada’s financial stability and brand-building experience.

The acquisition is complete and is not expected to undergo further changes beyond standard post-closing processes.

Agency inputs