Reports first surfaced in January that Capri enlisted Barclays to help it secure a buyer for both Versace and Jimmy Choo. Over rounds of bids, other players including ex-Gucci CEO Marco Bizzarri and Primavera Capital Group were said to have signalled interest in the opportunity to own Versace. It’s rare that a storied fashion house like Versace goes up for sale, especially in an offloading situation, and both interest in the opportunity and speculation around where Versace would land were high.
As Capri and Versace part ways, a turnaround effort begins for Prada. Sales at Capri have decreased over the years, with Versace revenue dropping 15 per cent to $193 million in the third quarter of fiscal 2025, as group revenues fell 11.6 per cent. At Capri’s recent investor day, the company said its goal is to grow Versace into a $1.5 billion brand. Can Prada get there?
Versace is in need of a reinvigoration, analysts have said. In a note on 19 February, TD Cowen senior retail analyst and managing director Oliver Chen outlined the firm’s key needs from Versace: recruit a broader luxury base, and balance new and existing engagement from high-net-worth individuals and aspirational consumers. Establishing who the Versace customer is today — particularly in a market dominated by quiet luxury and a withdrawal from logos — will be another task. A new design vision under Vitale, with the continued involvement of Donatella as ambassador, will mark a refresh for the brand’s creative outlook.
When Capri formed as a group around the Versace acquisition, announced in late 2018 and closed in early 2019, it had ambitions to create an American luxury conglomerate. A well-known European brand in its stable would help it do just that, in a bid to also compete on the level of fashion’s heavyweights in Italy and France. Pandemic disruptions and a failed CEO succession plan led to struggles for Capri. Tapestry, too, has been figuring out its path forward since the acquisition fell through, and recently sold Stuart Weitzman to Calares Group for $105 million as it moves to focus its efforts on its largest brand, Coach.
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