The global luxury sector is undergoing a major reshuffle as Prada Group finalises its €1.25bn (£1.10bn) acquisition of long-time Milanese rival Versace one of the most striking consolidations the Italian fashion industry has seen in decades. The move brings Versace’s unapologetically glamorous, body-con aesthetic under the same corporate umbrella as Prada’s cerebral, minimalist “ugly chic” and Miu Miu’s youthful, trend-setting spirit.
The deal had been in the works for months, but Prada confirmed its completion in a brief statement after securing all regulatory approvals. The takeover instantly reshapes the competitive landscape, positioning Prada as one of the few European luxury groups capable of rivaling the scale and diversification of giants such as LVMH and Kering.
Versace’s Struggle Under Capri Holdings
Versace leaves behind its former owner, the US-based Capri Holdings (which also controls Michael Kors and Jimmy Choo). Capri acquired Versace for $2bn in 2018, hoping to turn it into a central pillar of its luxury portfolio. Instead, the Italian label found itself squeezed by the industry’s pivot toward quieter, more understated dressing the “quiet luxury” wave that dominated 2023 and 2024.
While Versace remained a globally recognised brand with strong cultural cachet, insiders and analysts repeatedly pointed to inconsistent execution, slower growth, and a tension between its maximalist identity and the market’s evolving tastes. The brand contributed 20% of Capri’s €5.2bn (£4.5bn) revenue for 2024 significant, but not enough to propel Capri forward as hoped.
A New Era Under Lorenzo Bertelli
As part of the takeover, Lorenzo Bertelli—the son of Prada founders Miuccia Prada and Patrizio Bertelli will assume the role of executive chairman at Versace. Considered the future leader of the entire Prada Group, Lorenzo is already responsible for marketing and sustainability and has been key to modernising the company’s strategic direction.
Although he has stated that no sweeping executive changes are planned in the short term, Bertelli has openly addressed Versace’s poor recent performance. He describes the house as “an icon with global awareness, but one that hasn’t fully translated recognition into results.” Prada believes the brand can grow significantly with the right operational support and creative focus.
Creative Revival Already Under Way
Versace is already in the midst of a notable artistic shift. Its new creative director, Dario Vitale, debuted his first collection during Milan Fashion Week this September. The collection received strong industry attention for reasserting the brand’s signature glamour in a sharper, more modern direction. Prada executives emphasised that Vitale’s appointment and debut were independent of the takeover, indicating that Versace was already laying groundwork for a comeback.
Versace’s Role in the New Prada Group Structure
Analyst presentations after the acquisition laid out the expected distribution of revenues within the expanded Prada Group:
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64% — Prada (the flagship brand)
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22% — Miu Miu (which has seen a major resurgence recently)
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13% — Versace (reflecting its current size with room to grow)
Prada itself has been performing strongly, with the wider group posting a 17% revenue increase last year to €5.4bn (£4.5bn).
Integration Into Prada’s Manufacturing Powerhouse
One of the most significant elements of the acquisition is the incorporation of Versace into Prada’s famously robust Italian supply chain—a world-class manufacturing network that is central to Prada’s identity and commercial success.
Bertelli highlighted this synergy to reporters last week:
“Making a bag for one brand or another the know-how is the same.”
Prada’s state-of-the-art leather goods factory in Scandicci already producing for Prada and Miu Miu will soon manufacture Versace products as well. Versace will also benefit from Prada’s vertically integrated production model, which is considered one of the most efficient and quality-driven in the luxury sector.
This integration is supported by major ongoing investment. Prada Group is committing €60m (£52m) to its supply chain in 2025 alone, funding:
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new manufacturing sites near Siena and Perugia,
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an expansion of its Church’s footwear plant in the UK,
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and upgrades to another major facility in Tuscany.
These developments follow €200m (£175m) spent between 2019 and 2024 to strengthen and modernise Prada’s production capacity.
Prada’s Investment in Artisans and Training
Another defining pillar of Prada’s strategy is talent development. For 25 years, Prada’s internal training academy has been cultivating artisanal craftsmanship across Italy.
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570 artisans have been trained to date.
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120 trainees participated in the programme last year, with 70% hired directly by the group.
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152 trainees are enrolled this year evidence of Prada’s expansion plans.
This deep reservoir of trained specialists gives Prada the ability to absorb a new brand like Versace without compromising quality or production efficiency.
A Bold Bet on Italian Excellence
The acquisition is widely seen as a strategic affirmation of Italian luxury craftsmanship at a time when global competition is intensifying. With Prada’s operational strength and Versace’s iconic status, the combined group aims to become a stronger challenger to the French conglomerates that dominate the luxury market.
Industry analysts suggest that if Prada can successfully channel Versace’s global recognition into consistent performance and if Vitale’s creative direction continues to resonate the brand could be on the verge of a major revival.