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.
Prada’s operational and creative capabilities and its Italian roots make it a strong company to steer Versace in the right direction.
“It’s clear that Versace will now have the opportunity to fully step into our world of industrial production,” Bertelli told Vogue Business during a recent visit to Prada Group’s Academy for artisans, Scandicci. “This means not only accessing a more structured and sophisticated manufacturing ecosystem, but also benefiting from processes, expertise and capabilities that can elevate the brand’s craftsmanship and operational strength.”
The cost of the turnaround will impact Prada in the short term, however, analysts agree. “I do expect early pressures on [Prada Group’s] margins, given that, currently, Versace is unprofitable, it needs reinvestment, and revenue needs to pick up,” Jelena Sokolova, senior equity analyst at Morningstar, told Vogue Business in early October, adding that this will likely take time to achieve. Many analysts tentatively inquired about the effect of the acquisition on Prada’s bottom line, in the group’s recent earnings call, but executives were unable to comment until the completion of the sale. Based on previous years, Prada’s next earnings call should take place in March 2026, providing further clarity on the outlook.
A new era under Dario Vitale
Strategically, analysts hope Prada will re-establish Versace’s authority, with a focus on strong, high-end ready-to-wear. Following the appointment of chief creative officer Dario Vitale in March 2025, that could be on track. Vitale was hired shortly before the Prada Group sale in April, replacing Donatella Versace as the first non-family member to helm the house. His powerful first outing was one of the most talked-about debuts of the season, perhaps only overshadowed on the final day of Paris Fashion Week by Matthieu Blazy’s Chanel.
The collection, an ’80s fever dream of tight, brightly colored denim and separates, embellished bras and waistcoats (already spotted on the likes of Addison Rae), was declared a season highlight by almost every buyer interviewed by Vogue Business at the end of fashion month, from Mytheresa to Dover Street Market. Vitale’s Versace is also positioned firmly in the luxury category, with pieces ranging from €900 for belts to over €26,000 for special gowns, based on early insights from the Moda Operandi trunk show. And while one collection alone cannot save a brand, there’s strong momentum behind Vitale’s vision as Versace launches into its next chapter.
Donatella, who was crucial to the brand’s sustained cultural gravitas, even as sales faltered, remains a global ambassador for the house. When the Prada sale was announced in April, she celebrated with a post on Instagram. “I am absolutely delighted for Versace to become part of the Prada family. Gianni and I have always had a huge admiration for Miuccia, Patrizio, and their family,” Donatella wrote. “I am honored to have the brand in the hands of such a trusted Italian family business, and I am ready to support this new era for the brand in any way that I can.” Versace didn’t attend Vitale’s Spring/Summer 2026 show, which was a late addition to the calendar.
Bertelli sees potential in Versace’s cultural capital. Its history and sensibility is what attracted Prada Group to acquire the house. “Gianni [Versace] was the man who made a traditionally bourgeois, ultra-elite sector suddenly pop. He brought aspiration into a world where aspiration didn’t even exist. In my view, it was a revolution comparable — dare I say — to what Michael Jackson did in music: he took something aspirational and made it wildly popular, glamorous and culturally magnetic. Versace still has that fascination today,” he said. “It’s completely complementary to the other brands in our group — there’s no overlap in identity, no risk of one stepping on the other’s toes. It’s a universe of its own. That’s why it stood out in a sea of options.”
Vitale’s first Versace collection will hit stores early next year, while the designer prepares for his sophomore show in February. As Versace aims to reposition itself firmly in luxury, adjacency to Prada and Italian manufacturing will be a plus.
Correction: This story was updated to correct an error in currency on the value of the Prada-Versace deal. The deal was completed for €1.25 billion not $1.25 billion as previously written
