Robust revenue puts the brand in a stronger position to acquire Versace from Capri Holdings.
advertisementOn Tuesday, the Prada Group recorded double-digit growth for the fourth consecutive year, bumping into a slide in the luxury sector amid talk about the potential for Versace to acquire.
The group that owns Prada and Miu Miu fashion brands and church footwear reported that it increased revenue of 17% to 5.4 billion euros last year, from 4.7 billion euros in 2023.
Retail sales rose 18% over the period to 4.6 billion euros.
The Prada brand, which accounts for the majority of revenue, reported sales to be strong by 4%, but it almost doubled for the younger Miu Miu.
The Prada Group’s results oppose market trends, with the luxury sector signing contracts for the first time since the financial crash last year.
“This success highlights the lasting relevance of our brand. It comes from an unwavering focus on product innovation, quality, craftsmanship and unique ability to read modernity,” said Prada Group Chairman Patrigio Bateri.
Prada is looking at the potential acquisition of rival Versace brands, which US group Capri Holding, which has been owned since 2018 by Michael Kors and Jimmy Chew.
“I think it’s on everyone’s table,” Miuccia Prada said last week after unveiling Prada’s fall 2025-26 collection.
Asked about Prada’s investment plans during an analyst conference call, CEO Andrea Guerra added that while focusing on the company’s current brand expansion, it is “rog arrog” to not appreciate the opportunity to present itself. He did not mention Versace by name.
Italian media reports that the sale will value Versace at 1.5 billion euros, a discount of 1.8 billion euros paid by Capri Holding in 2018.
The current owner was founded in 1978 and has struggled to reposition Italian fashion stubborns, which have been under the creative direction of Donatella Versace for over 20 years.
Luka Solca, a high-class analyst at Bernstein, said Prada “may be making Versace cheaper.”
However, he added that the successful acquisition is undermined.
“Prada has a track record of very bad M&As,” he said.
“Versace’s revival requires a lot of money, capabilities, management attention and short-term sacrifices,” Solka said.
