MILAN – Prada has successfully completed its acquisition of the iconic Italian luxury fashion house Versace for $1.38 billion. This purchase price is notably less than the $2 billion paid by Capri Holdings in 2018 and marks a significant strategic move for Prada, aiming to fortify its position within the highly competitive global luxury market and challenge conglomerates like LVMH.

The acquisition follows a period of notable change for Versace, including the departure of Donatella Versace as creative director and a reported deceleration in sales performance during its ownership under Capri Holdings. During its stewardship, Capri Holdings had reportedly pivoted Versace towards a more minimalist aesthetic and implemented price increases, factors that may have influenced the brand’s market trajectory. For Capri Holdings, the proceeds from this sale are earmarked for substantial debt reduction.

Prada expressed strong confidence in Versace’s inherent potential, yet cautioned that revitalizing and integrating the brand would require a long-term perspective, emphasizing the need for patience and disciplined strategic execution. This move underscores a broader trend in the luxury sector as major players consolidate assets to gain greater market share and operational efficiencies.