Prada’s Versace Gamble: The Boldest Move Yet in Italy’s Luxury Power Play

On April 10, the Prada Group announced it would acquire full ownership of Versace’s holding company, GIVI Holding S.r.l., from Capri Holdings for €1.25 billion. The deal will bring Versace under Prada’s growing portfolio, with completion expected later this year.

The industry had been whispering about the potential deal since January, with speculation intensifying in February around whether Prada might also acquire Jimmy Choo. But with no confirmation from either side and fluctuating rumored valuations—from €3 billion to €1.5 billion—the eventual price tag came in well below expectations, suggesting lengthy negotiations and plenty of second-guessing along the way.

Prada may be eager to scale up, but its cautious approach and tough bargaining reflect the realities of today’s uncertain financial climate. Acquisitions are risky, especially in a luxury market buffeted by geopolitical tension and shifting consumer sentiment. Investors were initially skeptical—the company’s share price faltered after early rumors. But the official announcement flipped the narrative: shares jumped 5.7%, bringing Prada’s market cap to around HKD 129.4 billion.

At a media briefing, Lorenzo Bertelli—Chief Marketing Officer, Head of Corporate Social Responsibility, and the son of Miuccia Prada and Patrizio Bertelli—addressed the skepticism. He acknowledged the stylistic contrast between Versace and Prada’s existing brands but saw this as an asset rather than a liability. The brands target different audiences, meaning Versace opens up new market opportunities. In return, the brand will benefit from Prada’s expertise in creative direction, supply chain, and global distribution.

CEO Andrea Guerra echoed this view, calling the acquisition “a new and complementary perspective” for the group. Still, he was candid: brand revival takes time, discipline, and patience—and luxury is a business that rarely offers quick wins.

Would Prada micromanage Versace? Lorenzo Bertelli said no. The group plans to take a light-touch approach, drawing on the successful playbook used to reinvigorate Miu Miu.<