ROME — The Prada Group reported its fourth consecutive year of impressive growth, defying challenges faced by the luxury industry and amid speculations about acquiring Versace. The fashion conglomerate, which encompasses brands like Prada, Miu Miu, and Church’s footwear, experienced a 17% increase in revenues, reaching 5.4 billion euros ($5.7 billion) last year, compared to 4.7 billion euros in the previous year. Retail sales grew by 18% to 4.6 billion euros during this time.
The Prada brand, a major contributor to the group’s earnings, saw a 4% increase in sales, contributing significantly to the company’s success. Meanwhile, sales nearly doubled at the younger Miu Miu brand. These results are noteworthy as they come at a time when the luxury sector experienced an overall contraction for the first time since the Great Recession.
“This success highlights the lasting appeal of our brands, driven by a steadfast commitment to product innovation, quality, craftsmanship, and a unique understanding of contemporary trends,” stated Patrizio Bertelli, Chairman of the Prada Group.
Amid this successful phase, Prada is considering acquiring Versace, owned by the U.S.-based Capri Holding since 2018, which also handles brands like Michael Kors and Jimmy Choo. “I think it’s on everybody’s table,” noted Miuccia Prada following the recent presentation of Prada’s Fall-Winter 2025-26 collection.
Italian reports suggest that Versace could be valued at 1.5 billion euros ($1.6 billion) in a potential sale, a noticeable markdown from the $2 billion that Capri Holding paid. The current owners face challenges in revitalizing the iconic Italian label, established in 1978, with Donatella Versace at the creative helm for over two decades.
Luca Solca, a luxury analyst with Bernstein, observed that Prada “might secure Versace for a bargain,” highlighting that Versace is a reputable name that could enhance Prada’s portfolio. However, Solca also identified potential hurdles in the acquisition process.
“Prada has a poor track record with mergers and acquisitions,” he explained. “Reviving Versace would require substantial funding, expertise, management focus, and short-term sacrifices,” Solca cautioned.
