The deal of the year in the luxury industry is completed. The U.S. fashion holding Capri has completed the sale of the Versace brand to the Italian group Prada, in a transaction valued at $1.37 billion. The operation will allow Capri to regain economic stability in the next fiscal year, after dragging the red numbers in recent years.
“Following the completion of the Versace sale, we plan to use the proceeds to pay off the majority of our debt, which will substantially strengthen our balance sheet,“ John D. Idol, chairman and CEO of Capri Holdings, said in a statement. In 2018, Capri snapped up Versace for about $2.1 billion.
The executive has also noted that the company’s focus will be on “executing strategic initiatives at Michael Kors and Jimmy Choo,“ with which the company expects to “resume growth in fiscal 2027.“ The group is in the midst of a restructuring phase, initiated after Tapestry cancelled its attempted acquisition of Capri, forcing the group to refocus its strategy.
Capri Holdings posted net losses of up to $645 million in its last fiscal year, ending in 2025
Prada agreed to buy Versace last February, making it the largest deal in the group’s 112-year history and a move that puts the company in a new league within European luxury.
With annual revenues of around $821 million, Versace will bring a distinct aesthetic to Prada’s portfolio, while reinforcing the ambition to build an Italian player capable of competing against LVMH, Kering or Richemont.
Capri Holdings ended fiscal 2025 with a net loss of $645 million, up from a negative $472 million in the previous year. This figure included a tax provision of $545 million, of which $119 million related to the sale of Versace to Prada.
