On Thursday, April 10, 2025, Prada announced it’s buying Versace from Capri Holdings for 1.25 billion euros—that’s about $1.38 billion. Prada’s known for its classy, clean looks, and Versace is all about bold, flashy vibes. Joining forces could make them a super-strong Italian duo ready to take on big French brands like LVMH, the parent of Louis Vuitton.
For Capri, selling Versace means more cash to fix up their other brands—Michael Kors and Jimmy Choo—which have been struggling.
The news broke during a fancy dinner in Milan on Wednesday, where Prada CEO Andrea Guerra sounded fired up.
“Versace’s got this amazing energy,” he said. “We’re gonna mix our styles and make something really special.”
Back in New York on Thursday, Capri CEO John Idol was blunt:
“Selling Versace lets us focus on what’s next for us,” he told the crowd. “It’s the smart move right now.”
But there’s more to the story. Versace hasn’t exactly been crushing it since Capri bought it for $2.15 billion in 2018—sales dropped 15% just last quarter. Prada’s buying it for much less than expected, partly because people are worried about new U.S. taxes on luxury goods that could hurt high-end shopping.
And when Versace’s star designer, Donatella, stepped down in March and Prada tapped Luca Rossi to lead, rumors of a big shake-up started swirling.
It got a little shaky earlier in the week. On Tuesday, there were whispers that Prada might be getting cold feet because of market chaos. Capri denied it, but the jitters had already spread.
This deal is a big moment for Italy. The country’s been trying to keep its fashion powerhouses local instead of watching them get scooped up by foreign giants. Prada’s already winning big with its Miu Miu line—sales are up 50%—but taking on Versace won’t be easy. Some folks still remember when Prada tried acquiring another brand and things didn’t go so well.