Prada’s deal to buy Versace has revived hopes for a “Made in Italy” luxury champion after many other family-founded brands ended up in French, Swiss or American hands, at a time when many Italian groups are outperforming the struggling luxury sector.
The $1.375 billion deal puts one of Italy’s best-known fashion brands back under Italian control after it was sold to U.S.-listed Capri Holdings, then known as Michael Kors, for $2.15 billion including debt in 2018.
While Italy accounts for 50% to 55% of global personal luxury goods production, the country lacks a group of comparable size to French businesses such as LVMH (LVMH.PA), opens in a new tab, according to estimates by consultancy Bain. , opens in a new tab and Gucci parent Kering (PRTP.PA), opens in a new tab.
Prada (1913.F), Milan, opens in new tab The Hong Kong-listed Prada Group, controlled by designer Miuccia Prada and her husband Patrizio Bertelli, is valued at around €14 billion ($15 billion) and is Italy’s largest luxury fashion group by revenue.
But the group, which also owns the fast-growing Miu Miu brand, has a relatively low stock market valuation compared with the likes of Louis Vuitton parent LVMH.
Prior to the Versace deal, Andrea Guerra was appointed Prada CEO in 2023 to bridge a generational gap, while Lorenzo Bertelli, son of the company’s main owner and chief marketing officer, was seen as the heir apparent.
“Prada aspires to become the leading luxury group in Italy, which is significant in a market dominated by French groups. It’s what many Italians have been waiting for,” said Achim Berg, a consultant to the fashion and luxury industry.
The combined revenues of Italy’s five largest listed luxury groups – Prada, Moncler (MONC.MI), opens in new tab, Ermenegildo Zegna (JN0.F), opens in new tab, Brunello Cucinelli (BCU.MI), opens in new tab and Salvatore Ferragamo (SFER.MI), opens in new tab – are well below Kering’s sales of around €17 billion even though the French group’s sales fell sharply last year.
Company founder Brunello Cucinelli summed up the different approaches on both sides of the Alps in typically colorful fashion.