Prada and Versace: is this the move that will reshape Italian luxury?

Prada has set the date for the closing of its acquisition of Versace. It will take place on 2 December, finalising a €1.25 billion transaction — the largest in the group’s 112-year history.

The news, first reported by Milano Finanza, signals a step that goes far beyond a simple change of ownership. The move places Prada in a new strategic position and reopens the possibility of forming a major Italian luxury conglomerate capable of competing with LVMH, Kering or Richemont.

Lorenzo Bertelli takes the helm

The deal comes only days after the announcement of Lorenzo Bertelli’s new role as executive chairman of Versace. The group’s heir — and the figure behind Miu Miu’s recent rise — will assume the position once the acquisition is completed. Even so, no immediate changes are expected; he intends to observe first and act later.

More than a generational shift, the question is whether Bertelli will be able to apply the “Miu Miu formula” to Versace — a method based on refining product, pricing and storytelling to connect with younger audiences. A strategy that could breathe new life into a house known for its baroque flair but in need of a genuine update.

The state of Versace

Versace arrives at Prada after challenging years under Capri Holdings. The group failed to halt the decline that began after its purchase in 2018. It tried to tone down the maximalism, increase prices and improve margins, but sales still fell by 20%. The company is operating at a loss and its network of directly operated stores remains limited. Heavy reliance on wholesale and outlets ended up restricting its growth.

The situation stands in contrast with Prada Group, which has strengthened its direct distribution and managed to grow even in a volatile global luxury market.

Prada in controlled-expansion mode

Prada closed the first nine months of the year with revenues of €4.07 billion, a 6% increase. The strongest push came from Miu Miu, which lifted sales by 41%. The Middle East, the Americas and Asia-Pacific also contributed, while Prada recorded a slight decline of 1.6%.

This acquisition of Versace, debated “for a long time” within the family, responds to a clear ambition: to build an Italian player with greater weight and influence. Versace brings a strong, recognisable aesthetic and an expressive world that complements what Prada already excels at.

What could this union mean for luxury?

If Miu Miu is any indicator, the integration may open a new chapter for Versace — one that preserves its maximalist energy but executes it with more precision and in line with today’s consumer.

Prada is not seeking to tame the brand, but to reactivate it with a proven strategy. Versace does not lose its identity; it gains a group capable of sustaining it and pushing it further. And Italian luxury recovers the chance to speak with a stronger, unified voice.

This deal is not a final point — it is the beginning of a chapter that could reshape the map of European high fashion.

Donatella says goodbye to Versace with a journey into the past.