The Prada Group is accelerating its most significant strategic move in its 112-year history—the €1.25 billion acquisition of rival Italian luxury house Versace from US-based Capri Holdings—by appointing heir Lorenzo Bertelli as its future executive chairman. The appointment signals a direct injection of the Prada family’s successful turnaround strategy, particularly the revitalization playbook used for its younger brand, Miu Miu, into the lagging Versace brand.
The high-stakes luxury consolidation deal that returns Versace to Italian ownership is set to close on December 2, 2025. The Prada Group is completing the €1.25 billion (approx. $1.4 billion) all-cash acquisition of Versace from US-based Capri Holdings, a move widely viewed as an attempt to create an Italian counterweight to French giants LVMH and Kering.
The turnaround challenge and Miu Miu blueprint
Prada’s move is predicated on the belief that Versace, despite its iconic status and global recognition, is significantly underperforming its potential. The brand’s revenue fell by 15.0% to $193 million in Q3 Fiscal Year 2025 under Capri Holdings, highlighting the urgency of the intervention. Bertelli, who successfully helmed Miu Miu’s recent surge (with retail sales growing 93% in 2024 and a further 41% in the first nine months of 2025), is expected to replicate its model: a blend of sharp product repositioning, renewed narrative focus, and engagement with younger consumers.
Prada aims to leverage its superior industrial capabilities, retail execution, and operational expertise to stabilize the house known for its bold, maximalist aesthetic, creating a formidable Italian luxury conglomerate with pro-forma revenues exceeding €6 billion. While analysts note Prada's mixed M&A history, the group remains financially strong, reporting 19 consecutive quarters of growth as of September 2025. The challenge for Bertelli will be harnessing Versace’s strong brand equity to deliver commercial results without diluting its distinct, high-fashion DNA.
