INSUBCONTINENT EXCLUSIVE:
Prada is finalizing a $1.6 billion deal to acquire Versace from Capri Holdings, with discussions expected to conclude this month.The
represents a shift in the luxury industry, reversing years of foreign acquisitions of Italian brands like Gucci and Valentino
Capri Holdings, which acquired Versace in 2018 for $1.8 billion, has faced difficulties managing the brand.Versace reported a 15% drop in
revenue, totaling $193 million during the third quarter of its fiscal year
Meanwhile, operating losses widened from $14 million to $21 million.Prada, valued at $21.8 billion, remains significantly smaller than
competitors like LVMH, which boasts a market capitalization of $347.5 billion
However, Prada has shown resilience in the luxury sector with strong sales growth.Prada Nears $1.6 Billion Versace Acquisition, Reshaping
(Photo Internet reproduction)This growth has been driven by its Miu Miu brand, which has gained popularity among younger consumers
Versace and expand its influence.Capri Holdings Faces Financial ChallengesCapri Holdings has faced broader financial challenges, including a
recent downgrade of its debt to below investment grade by S&P Global Ratings
The company had also explored strategic options for its portfolio after an $8.5 billion merger with Tapestry fell through due to legal
complications.This acquisition reflects a broader trend of consolidation in the luxury industry as companies seek scale and diversification
This deal highlights the evolving dynamics of the luxury market as brands adapt to an increasingly competitive and innovation-driven
