Andrea Guerra, the CEO of Prada, has recently announced that the Italian luxury group does not have any plans for acquiring fashion labels in its pipeline. Instead, the group intends to invest their attention towards Versace, one of the most prominent names in the fashion industry.
Prada made a very crucial investment move this year with the acquisition of Versace from Capri Holdings. On April, the Italian fashion group bought out the label for around a billion euros after the approval from the US Federal Trade Commission. This marks an important chapter for both Prada and Versace. Given their respective legacies in the fashion industry, many anticipate a revolutionary phase emerging from this historic acquisition.
Prada CEO Andrea Guerra plans to focus exclusively on Versace
On November 28, Prada CEO Andrea Guerra announced that the Italian luxury plan has no plans of brand acquisition in the future. After the highly anticipated Versace deal, Guerra plans to focus exclusively on the new label. At the 25th anniversary event of the group’s academic, the Prada CEO spoke to Reuters regarding the same. He said, “We’ll be fully engaged with Versace for at least three years.“
The Versace deal came into being in April this year, when Prada Group declared to acquire Versace for €1.25 billion from Capri Holdings. The label was on sale due to the merger blockade by the US Federal Trade Commission that affected their business opportunity with Tapestry.
According to a Vogue report, Versace’s performance in the fiscal 2025 has not been remarkable as their earnings dropped 15 per cent to around $193 million. On the other hand, Prada Group exceeded market expectations, with sales moving up 9 per cent to a value of €2.74 billion in the first part of this year.
The Prada-Versace deal will come to its completion on December 2 as third important luxury label of the group, besides Prada and Miu Miu. At the end, Guerra said that Versace is “the brand that invented fashion as we know it today, the one that created glamour, introduced supermodels, brought fashion closer to popular culture… and brought music into fashion.“
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What does the Versace acquisition entail for Prada?
Andrea Guerra’s plan to work on Versace’s progress in the global market is an important direction for Prada to consider. Versace may have not made a memorable impression in the market this year. Yet, Versace is one of the major brands fashion enthusiasts and design experts look forward to every single year. Their designs have influenced not merely figures on the global market, but also swayed fashion trends that are always a style statement away from being changed definitively.
On the other hand, Prada’s long-standing presence in the fashion industry must not go unnoticed. Emerging about six decades before the inception of Versace, Prada’s success lies in their phenomenal brand managements, adaptability, as well as their creative genius that continues to dominate the fashion industry to this day. The centennial group, therefore, has quite the experience for a label like Versace to be immortalized in the annals of global style aesthetics.
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