Prada to Acquire Versace for €1.5bn—But Can Minimalism and Maximalism Coexist?

Jason Papp
Founder & Editor-in-chief
March 4, 2025



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As Prada is reportedly in final talks to acquire Versace from Capri Holdings for approximately €1.5 billion (£1.3 billion), we deep dive into a deal that could significantly reshape the luxury fashion landscape. The implications go beyond M&A strategy—this is about legacy, power, and whether an independent Italian house can rewrite the rules of global luxury.

An Italian Counterattack Against French Luxury Dominance

For decades, LVMH and Kering have treated the luxury industry like their personal chessboard, stacking brand acquisitions and turning heritage names into global cash machines. Prada, by contrast, has played the long game—eschewing the conglomerate model, protecting its singular aesthetic, and growing steadily under the watchful eye of Miuccia Prada and Patrizio Bertelli. But now, the game has changed.

As Mario Ortelli, managing partner at luxury advisory firm Ortelli & Co., puts it, "Scale matters." And Versace, for all its chaos, comes with built-in global name recognition and pop-culture relevance—two things Prada could use more of.

Yet, Prada isn’t just buying a name. It’s buying a problem. Versace has struggled under Capri Holdings, with revenues declining by 15% in fiscal 2025, according to Vogue Business. At the same time, Prada’s own momentum is undeniable, generating net revenues of €3,829m in 2024, up 18% year-on-year, arguably driven by strong brand identity, creative dynamism and sound execution.

Prada doesn’t need Versace to survive. The real question is: does it need Versace to win?

Prada Re-Nylon | Sadie Sink | Gentle Giants

Can Minimalism and Maximalism Coexist?

Prada and Versace sit at opposite ends of the luxury spectrum. Prada is cool, intellectual, and meticulously curated. Versace is flashy, loud, and thrives on excess. One embodies quiet luxury; the other, gold-plated, Medusa-stamped maximalism. If Prada over-sanitises Versace, it risks alienating the die-hard fans who wear it precisely because it’s gaudy. If it lets Versace run wild, it could dilute Prada’s own carefully maintained positioning.

Prada Re-Nylon | Benedict Cumberbatch | On Arctic Tides

A Prada-led Versace could mean:

  • Sharper brand discipline: Expect fewer discounts, less ubiquity, and a push toward ultra-luxury status.
  • Retail overhaul: A shift away from mass-market department stores and towards flagship boutiques and high-net-worth clientele.
  • Creative recalibration: Will Versace get a star designer at the helm? Prada’s track record suggests a major creative rethink could be in the cards.

But as BNP Paribas analyst Melania Grippo told Reuters, "The [Versace] brand needs restructuring and has a history of mismanagement with no easy fix." Prada is buying potential, but also a turnaround project.

Versace SS25 CO-ED SHOW

A Broader Luxury Shift?

This isn’t just about Prada or Versace—it’s about where luxury is headed next:

  • Conglomerates are inevitable. Independent luxury houses are disappearing. If Prada wants to play in the big leagues, it needs a stable of brands.
  • Gen Z and Millennial luxury buyers crave differentiation. If Prada homogenises Versace too much, it risks losing relevance with the consumers keeping the brand alive.
  • Sustainability tension. Prada has positioned itself as a sustainability leader. Versace, with its embellishment-heavy aesthetic, doesn’t fit that narrative. Something’s got to give.

The Verdict: Prada’s Moment of Truth

I believe this deal is a flex. If executed well, it solidifies Prada as a true Italian luxury powerhouse, capable of standing up to the French. But if Prada underestimates what it takes to manage a high-octane, celebrity-driven brand like Versace, this could force a DNA loss in the shuffle.

Jason Papp
Founder & Editor-in-chief