Prada buys Versace for €1.25bn - but Trump tariff turmoil apparently slashed price by €180m

Prada is to buy Versace for €1.25bn ($1.38bn) in cash in a move that will unite Italy’s two leading fashion brands. The seller is global luxury fashion group Capri Holdings, which in addition to Versace also owns Jimmy Choo and Michael Kors.

In a statement, Capri’s Chairman and Chief Executive Officer John D. Idol said, “Versace is an iconic Italian fashion luxury house founded 46 years ago by Gianni Versace and further developed under the creative vision of Donatella Versace. Over the last six years, we have made tremendous progress in repositioning the brand to place greater emphasis on its luxury heritage and exceptional craftsmanship. Through elevated product, marketing and store enhancements, the brand is now well positioned for sustainable long-term growth. We are confident that Prada Group is the perfect company to further guide Versace into its next era of growth and success.”

Mr Idol added that the money raised “will be used to increase shareholder value, strengthen our balance sheet and power the future growth of Michael Kors and Jimmy Choo.”

Capri had bought Versace for $2.1 billion in January 2019, but faced challenges since, including the US Federal Trade Commission blocking an attempted merger with Tapestry, owner of fashion brands coach and Kate Spade, in late 2024.

The deal follows months of speculation and media reports that it was on the cards and then rumours that it might fall through as a result of the market turmoil created by US President Donald Trump’s tariff plans.

According to media reports on the deal, including this story from The Guardian, the original price agreed was €1.43bn, but the impact of the tariff proposals knocked it down by around €180m.

Versace contributed 20% of Capri’s revenue in the year ending 30 March 2024, but the brand’s revenues fell from $1.1bn to $1.03bn against 2023, while operating margin plummeted from 13.7% to 2.4%.

Photo by Jacob Vizek on Unsplash

Prada is to buy Versace for €1.25bn ($1.38bn) in cash in a move that will unite Italy’s two leading fashion brands. The seller is global luxury fashion group Capri Holdings, which in addition to Versace also owns Jimmy Choo and Michael Kors.

In a statement, Capri’s Chairman and Chief Executive Officer John D. Idol said, “Versace is an iconic Italian fashion luxury house founded 46 years ago by Gianni Versace and further developed under the creative vision of Donatella Versace. Over the last six years, we have made tremendous progress in repositioning the brand to place greater emphasis on its luxury heritage and exceptional craftsmanship. Through elevated product, marketing and store enhancements, the brand is now well positioned for sustainable long-term growth. We are confident that Prada Group is the perfect company to further guide Versace into its next era of growth and success.”

Mr Idol added that the money raised “will be used to increase shareholder value, strengthen our balance sheet and power the future growth of Michael Kors and Jimmy Choo.”

Capri had bought Versace for $2.1 billion in January 2019, but faced challenges since, including the US Federal Trade Commission blocking an attempted merger with Tapestry, owner of fashion brands coach and Kate Spade, in late 2024.

The deal follows months of speculation and media reports that it was on the cards and then rumours that it might fall through as a result of the market turmoil created by US President Donald Trump’s tariff plans.

According to media reports on the deal, including this story from The Guardian, the original price agreed was €1.43bn, but the impact of the tariff proposals knocked it down by around €180m.

Versace contributed 20% of Capri’s revenue in the year ending 30 March 2024, but the brand’s revenues fell from $1.1bn to $1.03bn against 2023, while operating margin plummeted from 13.7% to 2.4%.

Photo by Jacob Vizek on Unsplash

Prada is to buy Versace for €1.25bn ($1.38bn) in cash in a move that will unite Italy’s two leading fashion brands. The seller is global luxury fashion group Capri Holdings, which in addition to Versace also owns Jimmy Choo and Michael Kors.

In a statement, Capri’s Chairman and Chief Executive Officer John D. Idol said, “Versace is an iconic Italian fashion luxury house founded 46 years ago by Gianni Versace and further developed under the creative vision of Donatella Versace. Over the last six years, we have made tremendous progress in repositioning the brand to place greater emphasis on its luxury heritage and exceptional craftsmanship. Through elevated product, marketing and store enhancements, the brand is now well positioned for sustainable long-term growth. We are confident that Prada Group is the perfect company to further guide Versace into its next era of growth and success.”

Mr Idol added that the money raised “will be used to increase shareholder value, strengthen our balance sheet and power the future growth of Michael Kors and Jimmy Choo.”

Capri had bought Versace for $2.1 billion in January 2019, but faced challenges since, including the US Federal Trade Commission blocking an attempted merger with Tapestry, owner of fashion brands coach and Kate Spade, in late 2024.

The deal follows months of speculation and media reports that it was on the cards and then rumours that it might fall through as a result of the market turmoil created by US President Donald Trump’s tariff plans.

According to media reports on the deal, including this story from The Guardian, the original price agreed was €1.43bn, but the impact of the tariff proposals knocked it down by around €180m.

Versace contributed 20% of Capri’s revenue in the year ending 30 March 2024, but the brand’s revenues fell from $1.1bn to $1.03bn against 2023, while operating margin plummeted from 13.7% to 2.4%.

Photo by Jacob Vizek on Unsplash

Prada is to buy Versace for €1.25bn ($1.38bn) in cash in a move that will unite Italy’s two leading fashion brands. The seller is global luxury fashion group Capri Holdings, which in addition to Versace also owns Jimmy Choo and Michael Kors.

In a statement, Capri’s Chairman and Chief Executive Officer John D. Idol said, “Versace is an iconic Italian fashion luxury house founded 46 years ago by Gianni Versace and further developed under the creative vision of Donatella Versace. Over the last six years, we have made tremendous progress in repositioning the brand to place greater emphasis on its luxury heritage and exceptional craftsmanship. Through elevated product, marketing and store enhancements, the brand is now well positioned for sustainable long-term growth. We are confident that Prada Group is the perfect company to further guide Versace into its next era of growth and success.”

Mr Idol added that the money raised “will be used to increase shareholder value, strengthen our balance sheet and power the future growth of Michael Kors and Jimmy Choo.”

Capri had bought Versace for $2.1 billion in January 2019, but faced challenges since, including the US Federal Trade Commission blocking an attempted merger with Tapestry, owner of fashion brands coach and Kate Spade, in late 2024.

The deal follows months of speculation and media reports that it was on the cards and then rumours that it might fall through as a result of the market turmoil created by US President Donald Trump’s tariff plans.

According to media reports on the deal, including this story from The Guardian, the original price agreed was €1.43bn, but the impact of the tariff proposals knocked it down by around €180m.

Versace contributed 20% of Capri’s revenue in the year ending 30 March 2024, but the brand’s revenues fell from $1.1bn to $1.03bn against 2023, while operating margin plummeted from 13.7% to 2.4%.

Prada buys Versace for €1.25bn - but Trump tariff turmoil apparently slashed price by €180m

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