Negotiations for a possible acquisition of Versace by Prada are reportedly at an advanced stage. According to the French economic daily Les Echos, the Milanese luxury group has reportedly agreed to a four-week exclusivity period to negotiate with Capri Holdings, the brand's current owner.
The industry's attention will focus on the Versace show scheduled for February 28 during Milan Fashion Week, not only to admire the new collections, but also because a formal offer from Prada could be made official on that occasion. However, the finalization of the operation will depend on the strategic choices of the group.
According to the French newspaper, Prada has already involved investment banks Goldman Sachs and Citi to evaluate the operation, while at a later stage Italian credit institutions could also come into play. Capri Holdings acquired Versace in 2018 for around 2,1 billion euros, keeping Donatella Versace at the creative helm of the brand. Despite its strong notoriety, the brand has suffered from the global slowdown in the luxury sector, with revenues of around 775 million euros and operational difficulties reported in the last quarter of 2025, in which profits fell by 15%.
In comparison, Prada enjoys a solid financial position, with an 18% increase in revenue in the first nine months of the year, reaching 3,8 billion euros. Growth was driven by strong performances in international markets, particularly in Asia, and the success of Miu Miu, another brand of the group. With positive net liquidity of 450 million euros at the end of December, Prada has the resources for strategic expansion operations.
An expert interviewed by the French daily emphasizes that a possible acquisition of Versace would mark a return of Prada to an external growth strategy, but warns that an effective integration will require a well-structured industrial and commercial plan. Furthermore, with Donatella Versace approaching 70, the question of the future of the creative direction of the brand would arise.
