Overview

• Prada is in the final stages of negotiations to acquire Versace from Capri Holdings, with a decision anticipated by April 10, 2025.
• The acquisition price has been renegotiated to approximately $1.38 billion, down from an initial $1.6 billion, due to the economic impact of U.S. tariffs and market instability.
• Capri Holdings, struggling with declining revenues and share prices, is selling Versace as part of a strategy to refocus on its flagship brand, Michael Kors, and reduce debt.
• Versace has faced financial challenges, including an 11% drop in quarterly sales and ongoing operating losses, contributing to its reduced valuation.
• The potential deal reflects broader shifts in the luxury sector, where trade uncertainties and underperforming brands are reshaping corporate strategies and valuations.