Daijiworld Media Network - New Delhi

New Delhi, Dec 2: In a landmark move for the global luxury industry, the Prada Group on Tuesday confirmed its acquisition of iconic fashion house Versace for $1.37 billion, bringing two of Italy’s most influential labels under one roof. Versace will now join a powerhouse portfolio that includes Prada and Miu Miu, signaling a major consolidation in Milan’s high-fashion scene.

The purchase ends Versace’s tenure under US-based Capri Holdings, which had owned the brand through the post-pandemic years. Capri said proceeds from the deal will be used to pay down most of its debt, strengthening its financial footing and enabling future investments. Executive Chairman John D. Idol noted that the company will now focus on boosting its remaining brands — Michael Kors and Jimmy Choo — with expectations of stabilisation this year and a return to growth by fiscal 2027.

Versace has experienced uneven performance since 2022, falling short of its pre-pandemic momentum and delivering mixed results in early 2025. Under the Prada Group, the brand is expected to benefit from deeper capital access, refined strategy, and Prada’s expertise in craftsmanship, experimental design, and disciplined global distribution.

Industry analysts say the merger could streamline everything from manufacturing and pricing to global retail expansion, potentially giving Versace the strategic reset needed for a new phase of growth. The acquisition is fully closed, with only routine post-completion steps remaining.