Italian fashion giant Prada buys Versace – at a discount

BBC News - WorldCenterEN 2 min read 100% complete December 3, 2025 at 08:00 AM

AI Summary

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Prada has acquired Versace for $1.38 billion, a deal finalized on Tuesday that brings two major Italian fashion houses under Prada's umbrella. The acquisition price is significantly lower than the $2 billion Capri Holdings paid for Versace in 2018. The move expands Prada's portfolio, including Miu Miu, to better compete with luxury conglomerates like LVMH. Versace's sales slowed under Capri Holdings, leading to the sale at a loss after a shift in design direction and increased prices. Donatella Versace stepped down as creative chief in March and was replaced by Dario Vitale. Capri Holdings plans to use the proceeds to reduce debt, while Prada aims to unlock Versace's "huge potential" through disciplined execution.

Key Entities & Roles

Key Player Opposition Context

LVMH 40% John D Idol 40% Andrea Guerra 50% Gianni Versace 50% Capri Holdings ×250% Donatella Versace 60% Prada ×480% Versace ×580%

Keywords

acquisition 100% luxury fashion 90% prada 80% versace 80% designer brands 70% financial performance 60% capri holdings 50% market competition 50% debt reduction 40%

Sentiment Analysis

Neutral

Score: 0.05

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Source

BBC News - World

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Center (0.00)

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Classification Confidence

90%

This article was automatically classified using rule-based analysis. The political bias score ranges from -1 (far left) to +1 (far right).

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acquisition luxury fashion prada versace designer brands financial performance capri holdings market competition debt reduction

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