In a groundbreaking move for the fashion industry, Italian luxury brand Prada has officially acquired its rival Versace for a staggering $1.380 billion. This acquisition marks a significant shift in the landscape of luxury fashion, as it reunites two of Italy's most iconic brands under one roof. The announcement was made on April 11, 2025, and has sent ripples through the fashion world, highlighting a new era for both brands.
Donatella Versace, the face of the brand since the tragic death of her brother Gianni in 1997, has signed the contract for the sale, a decision that reflects both a personal and professional evolution. As she stated, "I am delighted that Versace is becoming part of the Prada family. Gianni and I have always felt a great admiration for Miuccia, Patrizio, and their family. I feel honored that the brand is in the hands of such a reliable Italian family business, and I am ready to support this new era of the brand in every way I can." This sentiment underscores the emotional weight of the sale, as Donatella has transformed Versace into a powerhouse synonymous with glamour and boldness.
Previously, Versace was part of Capri Holdings, a luxury conglomerate based in the United States, which had acquired the brand in 2018 for $2.100 billion. The decision to sell Versace comes after a challenging period for the brand, which saw a 6.3% decline in turnover, dropping to $1.030 million in its 2024 financial year. This decline, coupled with a broader economic downturn affecting the luxury sector and increasing tariffs in the United States, prompted Capri Holdings to accept a significant reduction in valuation.
The acquisition not only brings Versace back into Italian hands but also creates a new Italian luxury group with revenues exceeding $6.600 million. This positions the newly formed entity as a formidable competitor to French giants like LVMH and Kering. As Patrizio Bertelli, Prada's president and CEO, remarked, "We are thrilled 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 legacy."
However, this union is not without its challenges. The styles of Prada and Versace are notably divergent, with Prada known for its minimalist sophistication and Versace for its exuberant, baroque designs. Critics have pointed out that merging these distinct aesthetics may prove difficult, yet some industry experts believe it could also lead to a revitalization of the Versace brand. Antonio Bandini Conti, a design advisor, expressed optimism, stating, "Prada will be able to resurrect a brand that was dying and give it a new life, a new light."
In a strategic move that hints at the acquisition, Versace appointed Dario Vitale, formerly of Miu Miu, as its new creative director in March 2025. Vitale's appointment, following Donatella's long tenure at the helm, suggests a fresh direction for the brand as it transitions into this new phase. His experience with Miu Miu, which achieved record results under his leadership, may signal a promising future for Versace.
Versace was founded in 1978 by Gianni Versace and his brother Santo, quickly becoming a symbol of Italian luxury and fashion. The brand is renowned for its daring designs and vibrant prints, often seen as a reflection of the bold, unapologetic spirit of its founder. The acquisition by Prada, known for its intellectual approach to fashion, introduces a complex dynamic that could redefine both brands.
As the luxury market continues to evolve, this acquisition reflects a broader trend of consolidation within the industry. In recent years, many iconic Italian brands have fallen into the hands of French conglomerates, making this reunion of Prada and Versace particularly significant. The new holding company will be named Gruppo Moda Milano, a title that, while lacking in creativity, emphasizes the goal of restoring Italian luxury to its former glory.
Despite the financial implications of the sale, the emotional aspect cannot be overlooked. Donatella's legacy, intertwined with the Versace name, is deeply personal. She has transformed her brother's vision into a thriving empire, navigating the complexities of the fashion world with resilience and creativity. The sale is not just a business transaction; it is a poignant moment in the ongoing narrative of the Versace brand.
The future of Versace under Prada will be closely watched as industry insiders speculate on how the two brands will integrate their distinct identities. Will the boldness of Versace harmonize with the understated elegance of Prada? Or will the merger dilute the essence of what makes each brand unique? Only time will tell.
In conclusion, the acquisition of Versace by Prada signifies a pivotal moment in the fashion industry, blending two powerful legacies into one. As the luxury market faces new challenges, this union may set the stage for a revitalization of Italian fashion, showcasing the strength and creativity of its heritage. With Donatella Versace remaining closely involved in the brand's future, the spirit of Gianni Versace will undoubtedly continue to influence the narrative of this iconic label.
