Strong earnings place the model in a stronger place to accumulate Versace from Capri Holdings.
The Prada Group on Tuesday posted double-digit development for the fourth consecutive yr, bucking the luxurious sector slide amid discuss of a doable Versace acquisition.
The group, which owns the Prada and Miu Miu vogue manufacturers together with Church’s footwear, reported a 17% increase in revenues to €5.4 billion final yr – from €4.7bn in 2023.
Retail gross sales rose 18% to €4.6bn within the interval.
The Prada model, which accounts for the majority of earnings, reported gross sales have been up a strong 4%, whereas they practically doubled at youthful Miu Miu.
The Prada Group outcomes are towards market developments, with the luxurious sector as a complete contracting final yr for the primary time because the monetary crash.
“This success underscores the enduring relevance of our manufacturers, which comes from an unwavering deal with product innovation, high quality, craftmanship and a novel capacity to learn contemporaneity,’’ Prada Group Chairman Patrizio Bertelli mentioned.
Prada has been eyeing the doable acquisition of the rival Versace model, owned since 2018 by the US group Capri Holding, which incorporates Michael Kors and Jimmy Choo.
“I believe it is on all people’s desk,’’ Miuccia Prada mentioned after presenting Prada’s Fall-Winter 2025-26 assortment final week.
Requested about Prada’s funding plans throughout an analyst convention name, CEO Andrea Guerra mentioned the corporate’s focus is on rising its present manufacturers, however added it will be “boastful” to not consider alternatives that current themselves. He didn’t point out Versace by title.
Italian media have reported that the sale would worth Versace at €1.5bn, a substantial low cost on the €1.8bn paid by Capri Holding in 2018.
The present proprietor has been struggling to reposition the stalwart of Italian vogue, which was based in 1978 and has been below the artistic course of Donatella Versace for greater than 20 years.
Bernstein luxurious analyst Luca Solca mentioned Prada “could also be getting Versace on a budget,” noting that Versace is a well known title that enhances Prada’s current manufacturers.
However he added there are obstacles to a profitable acquisition.
“Prada has a really dangerous M&A monitor document,” he mentioned.
“Reviving Versace wants some huge cash, competence, administration consideration, and short-term sacrifice,” Solca mentioned.