Prada–Versace deal due to close on December 2

“Versace is a unique and extraordinary brand, yet one that is complementary to Prada and Miu Miu in terms of aesthetics and consumer sentiment,” said Andrea Guerra, CEO of the Prada Group, in an interview with La Repubblica. “At the same time, Versace shares important affinities with our brands: it is rooted in culture, in deep thought, and in the classical history of the Mediterranean, with a clear vision.” 

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Versace was acquired by the group last April for €1.25 billion and will become part of it on December 2. The acquisition, Guerra explains, “was an opportunity. Its owners felt compelled to sell at a time when many competitors were looking inward rather than pursuing expansion. We felt ready and seized this opportunity, including on price.”

As for the goals, “fully aware that this is a major commitment, we do not expect to achieve tangible results in the short term, but in the long term,” notes the CEO. “If we continue to grow, we can reach €7 billion in revenue in the future. But we need to do profound work: on the brand, on creativity, on positioning, on identity, on product desirability.”

As for Gianni Versace‘s legacy, the important thing, Guerra points out, “is not to betray its history. In the fashion we see today there is a great deal of Versace: he was the first to pioneer the era of the supermodels and glamour, and he brought fashion closer to popular culture and to music. The brand’s DNA is very strong and it is up to us to understand how it should live in 2027, in 2030, in 2040. There has to be a positive tension between the brand’s creativity and its history.”

Lorenzo Bertelli will become executive chairman of Versace, but his mother, Miuccia Prada, will not be in charge of the creative side. “Mrs Prada is a major shareholder in the Prada Group, but she will not be in charge of Versace’s creative side,” Guerra assures. “There will be people, starting with Lorenzo, who will embark on this journey. It will be a moment of discontinuity; we will be able to adopt some different approaches, and also experiment. We can use Versace as a laboratory to test ourselves. And this will be interesting for Lorenzo as well.”

For the group, Versace’s entry will be a moment of evolution: “We have two important engines, Prada and Miu Miu, which have delivered 20 consecutive quarters of uninterrupted growth,” notes the CEO. “Now we are adding another engine, Versace, which will bear fruit in the long run. We are on a path of evolution; this company has come this far in just one generation thanks to the very strong imprint of its founders, who still run the company with us. There is a strong history to respect and a succession already outlined and clear to everyone.” As for Armani, “today there is a will and a family in place that has to come through a period of great sorrow and determine what the path and the timing will be. From our point of view there is great respect and we do not fear anything; we are very active.”