The Prada Group announced robust growth figures for the fourth year in a row, withstanding the downturn in the luxury market as speculation rises about a potential acquisition of Versace. The group, recognized for its Prada and Miu Miu fashion lines as well as Church’s shoes, registered a 17% increase in revenues, reaching 5.4 billion euros (approximately $5.7 billion) in the past year, up from 4.7 billion euros in the prior year.
Retail operations saw an 18% uplift, totaling 4.6 billion euros during this timeframe. The Prada brand, the main contributor to the group’s income, saw a commendable 4% rise in sales, while sales for the younger Miu Miu doubled. This performance defies overall market patterns, as the luxury industry experienced a contraction for the first time since the Great Recession.
Prada Group Chairman Patrizio Bertelli emphasized, “This achievement highlights our brands’ persistent relevance, driven by steadfast dedication to innovation, quality, craftsmanship, and a knack for understanding contemporary culture.”
Prada has been considering acquiring Versace, a rival brand owned by Capri Holdings since 2018, a conglomerate that includes Michael Kors and Jimmy Choo. Miuccia Prada commented, “I believe it’s a topic of interest for everyone,” reflecting after unveiling Prada’s Fall-Winter 2025-26 collection.
During a call with analysts, CEO Andrea Guerra discussed Prada’s strategic plans, asserting that the focus is on enhancing existing brands. However, he acknowledged it wouldn’t be wise to ignore available opportunities, though he refrained from directly mentioning Versace.
Reports in Italian media suggest Versace could be sold for 1.5 billion euros ($1.6 billion), a notable decrease from the $2 billion price when Capri Holding acquired it. The current owner has faced challenges in revitalizing this iconic Italian fashion house, created in 1978 and creatively led by Donatella Versace for over two decades.
Luca Solca, a luxury analyst at Bernstein, remarked that Prada “might acquire Versace at a favorable price,” acknowledging that Versace is a well-regarded brand that could align with Prada’s portfolio. However, he cautioned about potential acquisition challenges.
Solca elaborated, “Prada doesn’t have a strong M&A history,” adding that reviving Versace would demand substantial financial investment, expertise, managerial focus, and short-term concessions.