This week’s gorgeous briefing will host Prada’s $5.85 billion year and Versace acquisition. Holding, meanwhile, doubles with luxury retail and A-list collaborations, proves that luxury sportswear is no longer a niche. And Essilorluxottica is once again betting on smart eyewear. However, this time, I’m more leaning towards health than fashion. Plus, news to know and the latest stories from Glossy. If you have any comments about this briefing or tips for future editions, please email zofia@glossy.co.
Prada is rumored to be making high-stakes moves to expand its multi-brand luxury home to acquire the 1.5 billion euro ($1.63 billion) Versace by the end of March. According to analysts, the sale marks a 20% discount from Capri Holdings’ original acquisition price. However, this valuation makes sense when considering Versace’s slump to around $800 million last year, from its revenue of $1.1 billion in 2022.
“This simplifies the structure of Capri,” says Ohana & Co, a Boutique M&A advisory company. said Ariel Ohana, managing partner of “They can either double Michael Kors or double the pivot to acquire smaller, more agile brands that don’t rely on high-end department stores that are struggling with.”
For Prada, the deal will be behind the full year 2024 revenue. The company recorded revenue of 5.4 billion euros ($5.85 billion), increased 17% at a constant exchange rate, with an EBIT of 1.28 billion euros ($13.9 billion) and a margin of 23.6%. “We are pleased with these results and even more pleased with the strong foundation we have built for future growth,” said Andrea Gurera, CEO of Prada Group, in the company’s March 5th revenue call.
“This move feels like an out-of-brand feel to Prada,” said Christopher Morency, a fashion brand strategist. “They have positioned themselves for classy, everyday wear and quiet luxury over the past few years. Versace, on the other hand, is about luxury, sexual attraction and celebrity culture. It’s a completely different aesthetic and price position.”
For example, in his latest runway collection at Milan Fashion Week, Versace showed off baroque motifs, jeans and Western-style collars that were miles from Prada’s more refined aesthetics.
Prada is also investing in other areas. In the revenue call, Guerra highlighted the company’s aggressive investment in retail, digital and manufacturing, including renovating its store network and expanding in the US and China. Prada also aims to increase per-store profitability, shifting its focus from just expanding square feet to creating high-performance flagship locations that drive both in-store and online traffic.
If Prada wants to compete with LVMH and Kering, then it will need to expand and diversify its brand portfolio beyond Versace alone, Ohana said.
Guerra kept the door open for more acquisitions for Cole. “You never decide when things will come out,” he said. “But when they do, you always see them,” the whispers are swirling around Prada’s eyes on Jimmy Chu, so this deal may just be the first step towards the larger Prada group.
Revenue: On’s gorgeous play
The fashion-centric movements of running have been rewarded. On March 4, the company reported a revenue growth rate of 29.4% in the fourth quarter of 2024, reaching Chf 2.3 billion ($2.64 billion), while direct consumer share reached a record 48.8%.
“Cities like Paris and Milan have seen a significant increase in brand awareness in the region, demonstrating that physical presence can spark digital momentum,” On co-CEO Martin Baumann said in a revenue call.
It was the flagship of Champion Elizaise and Galleria Vittorio Emanuel II of Milan in December 2023, and was reserved for a high-end fashion house early last year.
“This store is one of the most important touch points because people spend their time on them. It’s an opportunity to provide what we call ‘reasons for believers’,” said McKinsey partner Eric Faldo. “They’re not just about shopping space, they’re also about enhancing the emotional benefits of the brand, which is important in this category.”
In January 2024, we first partnered with Luxury Designer Brand Loewe to combine Loewe’s luxurious craftsmanship and technical performance expertise in our limited edition capsule collection. Additionally, the brand hosted a Selfridge Shop-in-Shop in January, and is positioning itself alongside legacy brands using a celebrity-backed campaign.
“We started with Roger Federer four years ago, and now Zendaya is the voice of the next generation,” Baumann said over the phone. “This is just the beginning of our partnership. It’s been built for a long time.”
While On is still best known for its high-performance running shoes, it is clear that the brand has greater ambitions. In 2024, they launched their apparel collection with Loewe, which was sold in the $500-$990 range, leveraging Fashion-Forward Silhouettes and Premium Materials. The standard apparel range costs between $80 and $300.
“There has been a cultural change in how people view performance apparel,” Faldo said. “It’s not about function anymore, it’s about aspirations. It walks the tiny line between performance and fame, and that’s what resonates with consumers.”
Take two smart glasses: Will Luxottica do it right this time?
Essilorluxottica is bringing smart eyewear back to the market under the Nuance Audio brand. The first product was launched in the US in February and has received positive reviews, according to Davide D’Alena, global marketing director at Nuance Audio at Essilorluxottica. Its health and accessibility focus resonates.
“It’s a functional product and is designed to deal with mild to moderate hearing loss,” D’Alena said. “Our main customers are over 50. This means that we prioritize health and health markets over fashion positioning.”
Unlike previous smartglass lines like the Ray-Ban X Meta, Nuance Audio doesn’t focus on sophisticated designs or social media appeal. Instead, the company is promoting FDA-approved hearing enhancement technology with light eyewear frames. The frame has an integrated directional microphone and a modest speaker that amplifies the sound while increasing the transparency of your speech and minimizing background noise. The brand is located in 10,400 retailers and is expanding to audiology clinics with the aim of bridging the gap between medical devices and wearable technology. “We’re pushing hard towards key opinion leaders,” Dalena said. “Practitioners, hearing specialists – people who give legitimacy to their products.”
Luxottica’s previous smart eyewear attempts struggled to break past the early adoption phase due to a lack of customer adoption.
Luxottica’s Ray Ban x Meta Glasses are taking off and sells 2 million units as consumer trust grows. Some blind people also noticed the benefits of wearing them. As hearing health is an important part of the trend towards longevity, Luxottica is currently betting on a market with real demand, but little competition.
“There is strong evidence that untreated hearing loss leads to cognitive decline,” D’Alena adds, citing data from the National Institutes of Health. “Our goal is to break the barriers, stigma, price and discomfort of adoption while still maintaining the designs people actually want to wear.”
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