Prada Group’s Andrea Guerra: “For the time being, we do not anticipate any further acquisitions.”

Prada Group CEO Andrea Guerra, speaking to FashionNetwork.com, confirmed that after completion of the Versace deal, expected on December 2, the business will focus on the label and no further acquisitions are on the horizon for now.

FashionNetwork.com: Can we confirm completion of the Versace deal on December 2?
Andrea Guerra: Yes. Obviously anything can happen, but it should be finalised on the morning of December 2.

FN: Are you considering the “rescue” or “repatriation” of other Italian companies, having brought Versace back into Italian hands?
AG: Not at the moment. We will be fully focused on and committed to Versace for at least three years, so during this period I really don’t think we will acquire other companies. We should also remember that acquisitions are decided by those who sell, not by those who buy. How did the Versace story come about? We didn’t go looking for it; an opportunity arose, we assessed it, and realised it was an investment we could afford, not only financially but also organisationally. And we made it happen.

FN: What do you think of the Versace acquisition?
AG: Versace is a unique, extraordinary brand and incredibly complementary to the brands already in our portfolio. It is very different from the others, speaking to a different aesthetic and a different consumer; yet it also shares a number of elements with our other brands, because it too is rooted in a classical, Mediterranean cultural mindset. It was born of innovation; I even consider Versace the brand that ‘invented’ fashion as we know it today, because it ushered in glamour and supermodels, and brought fashion closer to popular culture. And- something we sometimes forget- it brought music into fashion.

FN: Why, in your view, has the idea of Made in Italy fashion and luxury excellence lost a little momentum globally?
AG: This industry has grown for 20 consecutive years; I don’t think there are other sectors that have done that. So if this is a time of consolidation, we shouldn’t get agitated if things go less well for a few months. I believe that anyone who works well will eventually reap the benefits of their efforts.

FN: What advice would you give to those working in the Italian fashion supply chain?
AG: I think we Italians have somewhat forgotten the end consumer. So I believe it is fundamental for anyone entering this world for the first time, or growing within it, to focus on product quality and care, innovation, and the ability to be unique. Manufacturing is extraordinarily important, but so is our ability to engage with the consumer, wherever they are in the world, using the technologies available today and strong selling capabilities.

FN: However, some people feel that the prices charged are very high…
AG: It depends. Should they be anchored in research and innovation? That’s straightforward. If someone ends up talking about prices, it’s perhaps because they haven’t found that equation. I believe that, in our case, consumers still find that equation credibly positive- they find value in the price they pay.

FN: In 2023 you forecast a doubling of the Prada Group’s revenue- it was 4.2 billion euros at the time and you were aiming for 8 billion. Do you think you’ll reach that goal?
AG: It was an ambition, and it remains so. We simply want to continue to grow at a faster rate than the industry, without shortcuts and without doing things that won’t lead to sustainable growth. So far, this strategy has worked. We’re putting another piece in the engine under our bonnet- Versace. It will be a long-term effort, but I’m sure it will be another element that can take us to the target we want to reach. The important thing is that Versace will have the opportunity to enter the Prada Group’s industrial and manufacturing world.

FN: Lorenzo Bertelli will become executive chairman of Versace; will you be joining Versace in any capacity?
AG: I am the CEO of the group, so together with Lorenzo we will manage the evolution of Versace and the rest of the Prada Group.