New Delhi, Dec 2 (IANS) The Prada Group on Tuesday announced that it has officially acquired luxury fashion label Versace in a deal worth $1.37 billion.

With this move, Versace will now operate under the same umbrella as Prada and Miu Miu, bringing together some of Italy’s most influential fashion brands.

The deal marks the end of Versace’s ownership under Capri Holdings, the US-based luxury group that had controlled the brand through the post-pandemic years.

Capri Holdings said the money received from the sale will be used to repay most of its debt, a step that will strengthen its financial position and improve its flexibility for future investments.

John D. Idol, Chairman and CEO of Capri Holdings, said the sale will help reduce the company’s debt burden and improve its leverage ratio.

He added that Capri will now focus on growing its remaining brands — Michael Kors and Jimmy Choo — and expects the company to stabilise this year and return to growth by fiscal 2027.

Versace has faced challenges in recent years, with slower retail growth after 2022 and a mixed performance in early 2025.

Capri Holdings noted in its filings that Versace’s sales did not keep up with expectations compared to its pre-pandemic momentum.

With the acquisition, Versace will now join Prada’s global portfolio, which is known for its experimental fashion, strong tailoring and selective distribution.

The move is expected to reshape Milan’s luxury landscape, bringing two of Italy’s most iconic fashion houses under one ownership structure.

Industry observers say the deal could help streamline manufacturing, distribution and pricing strategies across the brands.

It may also help Versace revive its performance with better access to capital and stronger long-term planning under Prada’s management.

The acquisition is complete and is not expected to change beyond the standard post-closing processes.

Market experts believe the new ownership could help Versace enter a new phase of growth backed by Prada’s financial stability and brand-building experience.

–IANS

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