Prada Group has acquired Versace from Capri Holdings in a deal worth €1.25 billion, pending regulatory approval.The move marks a return to Italian ownership for one of the country’s most recognisable luxury brands, nearly five years after it was purchased by Capri—formerly Michael Kors Holdings—for $2.1 billion.
The transaction comes at a time of significant restructuring for Capri. Following the collapse of its proposed merger with Tapestry, blocked by the U.S. Federal Trade Commission, the group has begun offloading key assets. While Versace was the first to be sold, Capri is reportedly seeking a buyer for Jimmy Choo, while shifting its strategic focus back to Michael Kors, its strongest-performing label.
Versace’s performance has weakened over recent quarters. In Q3 of fiscal 2025, the brand reported a 15 per cent decline in revenue, falling to $193 million. Capri’s overall group revenues dropped 11.6 per cent during the same period. While the company had previously outlined ambitions to grow Versace into a $1.5 billion business, that growth trajectory now rests with Prada.
Patrizio Bertelli, chairman and executive director of Prada Group, described the deal as “a new chapter” for both companies. In a statement, he emphasised the shared values of “creativity, craftsmanship and heritage,” adding that the group is positioned to support Versace through its “robust infrastructure and long-standing industry relationships.”
The acquisition also follows a significant internal shift at Versace. Donatella Versace has stepped down as creative director, transitioning into the role of chief brand ambassador. It is the first time the house’s creative leadership will fall outside the founding family.
Dario Vitale has been named as Versace’s new creative director. Vitale previously held key roles at Miu Miu—also part of the Prada Group—where he served as design director and head of image. His appointment signals a stylistic realignment for the brand, particularly as the luxury market pivots towards more understated aesthetics.
The Versace name remains closely associated with maximalism, opulence and bold visual identity—attributes that contrast with today’s prevailing “quiet luxury” codes. Repositioning the brand without losing its DNA will be one of Vitale’s first major challenges.
Market analysts have noted that Versace must expand its appeal to both high-net-worth individuals and aspirational consumers. In a recent briefing, TD Cowen’s Oliver Chen cited the need for Versace to redefine its core customer base while increasing engagement among emerging global markets.
Though reports suggested that U.S. tariffs may have impacted the deal’s valuation—lowering the final figure from an estimated $1.6 billion—Prada’s acquisition is widely viewed as a long-term investment. CEO Andrea Guerra commented that Versace has “huge potential” but that “brand evolution requires time, discipline and consistency.”
Capri’s original goal in acquiring Versace was to build a U.S.-based luxury conglomerate that could rival European giants such as LVMH and Kering. That ambition proved difficult to realise amid pandemic disruptions, leadership turnover, and an increasingly saturated fashion landscape.
For Prada, the move represents a strategic expansion. With a new creative director in place and Donatella Versace continuing as a public-facing figure, the group appears intent on restoring Versace’s relevance within the current luxury climate—one increasingly defined by restraint, global brand cohesion and long-term value.
Versace’s next chapter begins not just with a new owner, but a new direction.
