Prada Group has once again defied the odds in the struggling luxury sector, posting double-digit growth for the fourth consecutive year. The fashion giant, which owns Prada, Miu Miu, and Church’s, reported a 17% increase in revenues to €5.4 billion in 2024, up from €4.7 billion in 2023.
Retail sales rose 18% to €4.6 billion, a remarkable performance considering that the global luxury market contracted last year for the first time since the 2008 financial crisis.
The Prada brand, which accounts for the majority of the group’s earnings, experienced a solid 4% sales increase, while Miu Miu’s sales nearly doubled, reflecting strong demand for the younger, trend-driven label.
Potential Versace Acquisition
Despite its success, Prada is making headlines not only for its financial performance but also for its rumored interest in acquiring Versace, one of Italy’s most famous luxury brands.
Capri Holdings, which owns Versace, Michael Kors, and Jimmy Choo, acquired Versace in 2018 for €1.8 billion but has reportedly struggled to reposition the brand. Recent reports suggest that Versace could now be valued at €1.5 billion, making it an attractive acquisition target.
While Prada’s CEO Andrea Guerra declined to confirm specific plans, he stated during an analyst call that the company remains focused on growing its existing brands. However, he acknowledged that it would be “arrogant” not to evaluate opportunities.
Miuccia Prada, co-creative director of Prada, also hinted at industry-wide interest in Versace, saying, “I think it’s on everybody’s table.”
Challenges of a Versace Takeover
While some analysts see Versace as a strong addition to Prada’s portfolio, others highlight potential obstacles. Luxury expert Luca Solca pointed out that Prada has a poor track record with mergers and acquisitions, and reviving Versace would require significant investment, expertise, and leadership focus.
“Prada may be getting Versace on the cheap, but it will take a lot of money and management attention to turn it around,” Solca added.
With the luxury market facing uncertainty, Prada’s next move could be crucial. Whether it proceeds with a Versace acquisition or continues strengthening its core brands, the Italian fashion powerhouse remains one of the few luxury players thriving in a challenging market
