For $1.38 billion in cash, the international luxury fashion firm Capri has agreed to sell the Versace brand to the Italian design group Prada.

The transaction is expected to be completed in the second half of 2025, subject to regular closing conditions and regulatory clearances. This comes after Il Sole 24 Ore reported in January 2025 that Prada was interested in purchasing the fashion house. Versace was first purchased by Capri, which also oversees the Michael Kors and Jimmy Choo brands, for $2.12 billion in 2018.

Versace, a renowned international fashion design business, was founded in Milan in 1978. From its roots in haute couture, the brand has expanded to include the design, manufacture, marketing, and distribution of a wide variety of goods, such as clothing, jewelry, accessories, eyeglasses, watches, shoes, perfumes, and home décor pieces. Versace's global distribution network includes department stores, specialized shops, internet marketplaces, and its own boutiques.

The brand reported $193 million in sales for Q3 FY 2025, a 15% decline from the previous year. It experienced a mid-teens percentage loss in retail sales and a double-digit drop in wholesale revenues. The divestment is expected to strengthen Capri's financial position, boost investments in Michael Kors, and enhance shareholder value. Funds from the deal will support Capri's capital allocation plan, including debt reduction and potential stock buybacks.

John Idol, the chairman and CEO of Capri Holdings Limited, emphasized the company's notable achievement in reinventing itself over the past six years, emphasizing premium history and workmanship. The brand is prepared for long-term growth with enhancements to its stores, marketing, and merchandise. Idol expressed confidence that Prada Group will successfully lead Versace into its next phase and reaffirmed their commitment to increasing shareholder value and supporting Michael Kors and Jimmy Choo's growth while implementing the strategic initiatives they discussed at their recent Investor Day.

Under the direction of the Prada Group, Versace will preserve its distinct creative character and cultural authenticity while using Prada's robust platform, which includes retail experience, manufacturing know-how, and operational acumen.