Prada interested in taking over Versace

Italian fashion house Prada is among the parties interested in buying luxury brand Versace, which is being put up for sale by US company Capri Holdings, Il Sole 24 reported on Friday, according to Reuters.

In November, Tapestry - the owner of the Coach brand - abandoned an $8.5 billion deal to acquire Capri, which owns luxury brand Michael Kors.

After a deal to create a luxury conglomerate in the US fell through, Capri executives have not ruled out a potential sale of its brands. As a result, Capri has hired banking group Barclays to analyze its strategic options, including selling the Versace and Jimmy Choo brands, sources told Reuters on condition of anonymity. They do not rule out the possibility of the entire Capri Holdings group being put up for sale.

In November, Capri reported a worse-than-expected decline in quarterly revenue, amid a global slowdown in demand for luxury goods.

When contacted by Reuters, Prada representatives declined to comment on the Versace interest.

US banking group Citi is advising Prada on the potential sale of the Versace brand, the Italian publication said. Citi has worked with Prada in the past on a dual listing project that was suspended.

The source said other luxury groups, as well as private equity funds, are also interested in Versace, but the value of the transaction is still under discussion.

Versace, founded in Milan in 1978 by Italian designer Gianni Versace and still led by his sister Donatella as creative director, has become known for its bold and opulent prints, including the iconic Medusa motif.

Versace made a fifth of Capri's revenue in the fiscal year ending March 2024, or $1 billion out of a total of $5.2 billion for the group, compared with $5.6 billion the previous year.

Prada, a brand with a rigorous style and bearing the mark of creative director Miuccia Prada, defied the industry decline, with its sales increasing by 18% in the third quarter of 2024.

A Skyquest Technology analysis shows that the luxury goods market was valued at $242.8 billion in 2023 and rose to $255.91 billion in 2024, and is expected to reach $389.77 billion in 2032, based on a compound annual growth rate (CAGR) of 5.4% during the period 2025-2032.

According to the cited source, the luxury goods market is highly competitive, emphasizing innovation, efficiency and quality.