According to a report in the daily newspaper Il Sole 24 Ore, Italian luxury fashion brand Prada is considering acquiring luxury fashion brand Versace.
Prada says it is working with consulting firm Citi to evaluate the potential deal.
It is unclear whether Prada maintains an active interest or is still considering the opportunity to make an offer to Versace.
As reported by Reuters, the report comes after Versace’s parent company Capri Holdings engaged Barclays to evaluate strategic alternatives for its fashion brands, including Jimmy Choo. is.
The development follows the cancellation of plans to merge Capri and Tapestry in November 2024, worth a total of $8.5 billion, after the process was halted by a legal injunction due to regulatory concerns.
Even after the deal fell through, Capri management did not rule out the idea of selling the brand.
Capri, which is also owned by Michael Kors, has been hit by weak sales in the $400 billion luxury sector.
The company attributed the decline to lower spending by wealthy Chinese consumers and the end of a period of sustained growth for the industry.
Versace designs, manufactures, markets, and retails fashion and lifestyle products, including accessories, haute couture, and jewelry. It is led by Italian fashion designer and businesswoman Donatella Versace.
For the year ending March 30, 2024, Versace contributed one-fifth of Capri’s revenues. However, compared to the previous year, revenue decreased from $1.1 billion to $1.03 billion.
The brand’s operating margin shrank from 13.7% to 2.4%.
“Exploring Capri Versace and Jimmy Choo Sale” was originally created and published by Retail Insight Network, a brand owned by GlobalData.
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