(Photo courtesy of iFRAGRANCE Official)
The fashion world just got a major shake-up.
Prada has inked a massive $1.38 billion (€1.25 billion) deal to acquire Versace, wrapping up months of speculation and reordering the ranks of the industry’s elites.
Prada Buys Versace for a Cool $1.38 Billion
(Photo courtesy of Prada Group)
Prada has just clinched a billion-dollar deal to buy Versace from Capri Holdings, a game-changing move that might reshape the hierarchy of high fashion.
Prada, the Milanese fashion house born in 1913, and Versace, the high-octane label launched by Gianni Versace in 1978, are officially merging in a $1.375 billion all-cash agreement. The deal brings together two giants of Italian luxury, with the final approval likely landing later this year.
“We are delighted to welcome Versace to the Prada Group and to build a new chapter for a brand with which we share a strong commitment to creativity, craftmanship and heritage,” announced Patrizio Bertelli, Prada Group's chairman and executive director.
Bertelli emphasized that the plan is to keep Versace’s daring, timeless spirit alive while reimagining it through a modern lens.
Sources close to the deal say it was initially pegged at €1.43 billion, but with market chaos and trade tension weighing heavily on retail, Prada managed to negotiate a cut of about €180 million.
After Rumors and Tariff Drama, Versace Finally Found Its Buyer
(Photos courtesy of Versace)
The headline-making deal comes after a long stretch of rumors swirling around a potential union, with talks nearly derailed by market turmoil sparked by President Trump’s tariff shockwaves.
The fashion world had been buzzing since January, when Capri quietly brought in Barclays to explore potential sales for Versace and Jimmy Choo. As bidding intensified, names like former Gucci CEO Marco Bizzarri and investment firm Primavera Capital were reportedly eyeing the chance to take Versace under their wing.
The Versace snapped up by Prada was no ordinary sale. Seeing a brand so legendary and long associated with Italian opulence suddenly up for grabs was a moment the fashion world couldn’t ignore—and certainly one that raises more than a few eyebrows.
Versace has ruled the red carpet since its early days of glitzy, in-your-face Italian glamour, always known for turning fashion into a full-blown spectacle.
With supermodel-stacked runways and unforgettable shows, the luxury house has long been a favorite of icons like Madonna, Elton John, and Lady Gaga. Lately, even the next-gen elite (like Bella Hadid, Kim Kardashian, and Kylie Jenner) have been reaching for vintage Versace.
Capri Sells Versace to Prada and Puts All Bets on Michael Kors
(Photo courtesy of Michael Kors)
Capri, the parent company of Michael Kors and Jimmy Choo, put Versace up for sale after its planned merger with Tapestry—the group behind Coach, Kate Spade, and Stuart Weitzman—was blocked by the US Federal Trade Commission last November.
Since then, Capri has shifted gears, turning its attention back to rebuilding and doubling down on its strongest asset, Michael Kors. A buyer for Jimmy Choo is still being sought.
Notably, Capri—then known as Michael Kors Holdings—bought Versace back in January 2019 for more than $2.1 billion.
Capri noted it plans to reinvest the proceeds from the Versace sale into its remaining portfolio, with a focus on brands like Jimmy Choo and Michael Kors. On the other side, Prada’s expanding empire already includes names like Church’s, Miu Miu, and Marchesi 1824.
Donatella Steps Down After 30 Years at the Creative Helm of Versace
(Photo courtesy of AP News)
With Versace now under the Prada umbrella, a major leadership shift is underway.
On March 13, the house announced that Donatella Versace would be moving on from her longtime role as creative director to become chief brand ambassador. It marks the end of an era, nearly three decades after she took over the reins following Gianni Versace’s passing in 1997.
In her new chapter as chief brand ambassador, Donatella made it clear she’s not going far, declaring, “In my new role as chief brand ambassador, I will remain Versace’s most passionate supporter. Versace is in my DNA and always in my heart.”
For the first time in its history, Versace has named a creative director from outside the family. Dario Vitale officially leads the charge, bringing over a decade of experience from Miu Miu, where he most recently held the roles of design director for ready-to-wear and head of image.
The Italian designer’s deep ties to the Prada universe make him a natural fit as Versace turns the page under its new parent company.
What’s Next for Versace?
(Photo courtesy of Fashinnovation)
Now that Prada’s officially taken over, all eyes are on what comes next.
Capri had recently struggled with falling sales, including a 15 percent dip in Versace’s revenue in Q3 2025—down to $193 million—as group earnings shrank 11.6 percent.
The $1.5 billion growth target for Versace is still on the table, but whether Prada can reach it is a question mark.
Versace’s current direction has analysts worried, with many calling for a much-needed overhaul. TD Cowen’s Oliver Chen noted in February that the brand must widen its luxury appeal and balance its reach across high-net-worth individuals and status-seeking newcomers.
With quiet luxury dominating and logo fatigue on the rise, figuring out who today’s Versace customer really is has become half the battle. But even if that gets sorted, the bigger question remains: can this new Versace era keep the energy going and carry the momentum all the way through?
About The Writer
Meet Mariam — a fashion writer who lives and breathes all things vogue and glamour. For her, the most therapeutic aspect of fashion goes beyond simply shopping for the latest styles that appear in stores; it’s fully experiencing this glamorous world from the little details to the big moments (there's nothing quite like the thrill of flipping through a sleek fashion magazine, is there?).
