Prada and Versace: Two different stories and, now, a shared future

Now that the merger between Prada and Versace has been finalized, what will happen next? Will Prada be able to maintain Versace's DNA as promised by the Milanese company in todays press release? The Prada group is no stranger to acquisitions, having previously acquired Helmut Lang and Jil Sander, both of which were later sold, and the Church's group.

The company will work to evolve the Versace brand, something Capri Holdings failed to do. Versace "represents a unique asset in the luxury landscape, with deep roots in fashion history, but with strong potential in the contemporary scene and the sensibilities of current and future society," Prada emphasizes in the statement. Certainly, that "made in Prada" touch will be grafted onto the brand's DNA as Dario Vitale, former creative director of Miu Miu, is certainly capable of and was appointed creative director of Versace on March 13th.

But to understand how this merger will unfold, it is essential first to analyze the two different worlds, in terms of lineage, background, and growth of the two brands, but also the similarities that have made them, decade after decade, two giants of Italian fashion, known and loved, albeit in different ways and by different target audiences, worldwide.

The origins of the Prada Group

The origins of the Prada Group, listed on the Hong Kong Stock Exchange since 2011, date back to 1913. The brand was founded as "Fratelli Prada" by brothers Mario and Martino Prada. They opened their first store in the prestigious Galleria Vittorio Emanuele II in Milan.

In 1978, Mario's granddaughter, Miuccia Prada, took over the company. This date marks a crucial turning point in the brand's history. Miuccia Prada introduced an innovative approach to design and the use of materials. In the 1980s, she launched her iconic line of black nylon bags and backpacks, an industrial material that became a symbol of modernity and unconventional luxury.

At the end of the 1980s, Prada introduced its first women's ready-to-wear collection, defining a minimalist, sophisticated, and intellectual aesthetic that stood apart from the more flamboyant trends of the time. Under the leadership of Miuccia Prada and her husband Patrizio Bertelli, who joined the company in the 1970s, the men's line (Prada Uomo) and Miu Miu (in 1993) were launched.

In 1993 the Fondazione Prada was created

Over the years, the Prada Group has made several strategic acquisitions, such as the luxury footwear brands Church's and Car Shoe, further expanding its portfolio. In 1993, Miuccia Prada and Patrizio Bertelli created the Fondazione Prada, with locations in Milan and Venice.

Today, the Prada Group is one of the leading players in the global luxury sector, with a product range that includes clothing, leather goods, footwear, accessories, fragrances, and eyewear. Since 2020, Miuccia Prada has shared the creative direction of the Prada brand with designer Raf Simons, bringing new perspectives while maintaining the maison's distinctive identity. The group designs, manufactures, and distributes ready-to-wear collections, leather goods, and footwear in over 70 countries through a network of 609 stores (as of December 31, 2024), in addition to e-commerce channels, e-tailers, and department stores worldwide.

Prada has over 15,200 employees

The company, which also operates in the eyewear and beauty sectors through licensing agreements, has 26 self owned factories and 15,216 employees.

The group, which owns the Prada and Miu Miu brands, Church's, Car Shoe, Marchesi 1824, and Luna Rossa, recorded net revenues of 5.4 billion euros (5.9 billion dollars) in 2024, up 17 percent compared to 2023, exceeding the market average. Strategic capabilities and product quality, despite the challenging sector, are the basis of growth, as explained by Patrizio Bertelli, Chairman and Executive Director of the Prada Group, during the conference call with analysts and the press. Bertelli emphasized that the company looks to 2025 with confidence.

Retail sales amounted to 4.8 billion euros, up 18 percent year-on-year, driven by like-for-like and full-price volumes. In the fourth quarter, retail sales grew by 18 percent year-on-year. Looking at individual brands, Prada achieved retail sales growth of 4 percent compared to 2023, while Miu Miu recorded record growth, reaching 93 percent growth. The performance was driven by all product categories and geographical areas, closing the year with a fourth quarter with a 84 percent increase.

The company, led by CEO Andrea Guerra, recorded a further increase in profitability with an EBIT margin of 23.6 percent, equal to 1.3 billion euros. The group's net profit amounted to 839 million euros, up 25 percent year-on-year.

Asia Pacific, Europe, Japan, and the Middle East all recorded double-digit growth. The latter area recorded a solid performance throughout the year, up 26 percent supported by local demand and tourism.

Europe recorded growth of 18 percent over the year, supported by domestic consumption and tourism. Japan was the best-performing geographical area in 2024, up 46 percent, supported by particularly strong local demand, but also by positive tourist flows.

"Thanks to multi-year investments in industrial capacity and know-how, our manufacturing platform and our people are differentiating factors in a constantly evolving industry context that demands quality, agility, and efficiency," Bertelli explained a few weeks ago.

"In the last 12 months, Prada has confirmed its solid growth trajectory and Miu Miu has reached a new level of visibility and scale, driven by a well-diversified total look offering. Looking ahead, while aware of the persistent complexities of the sector, we confirm our strategic priorities. For Prada, there is a clear opportunity to continue gaining market share, while for Miu Miu the objective is to consolidate its success; to this end, we will continue to make the brands' positioning increasingly incisive, enrich the product portfolio, and nurture the dialogue with customers," emphasized Andrea Guerra, CEO of the Group.

Prada proposes a dividend of 0.164 euros per share to the shareholders' meeting

The Board of Directors proposes to the Shareholders' Meeting, convened for April 30th, the distribution of a dividend of 0.164 euros per share.

For 2025, the company forecasts growth above the market average.

Who is Versace

Forty-seven years ago, on March 28, 1978, at the Palazzo della Permanente, the story of Versace and Gianni Versace began, with the presentation of his first women's wear collection under his own name. The designer was murdered in Miami on July 15, 1997, but the brand he founded has entered the Olympus of Italian fashion history.

The History

It was the early 1980s: "Always in step with the times, Carla (Sozzani, ed.) wore tailored jackets by Giorgio Armani, dresses by Gianni Versace, and pieces designed by the latter for Callaghan," reads the book "Carla Sozzani, Art, Life and Fashion" recently written by Louise Baring for L'Ippocampo.

Versace, who founded the fashion house in 1978, was already a brand so interesting that it appealed to Carla Sozzani, one of the figures who shaped fashion, art, and design in recent decades. Director of Elle and special issues of Vogue, Carla Sozzani worked alongside designers such as Azzedine Alaïa, Romeo Gigli, and Paco Rabanne. In 1990, she founded 10 Corso Como, a space that combines fashion and art, design and conviviality, and where Sozzani expressed her pioneering vision.

Like Gianni Versace, born Giovanni Maria Versace in Reggio Calabria on December 2, 1946, nine years before his sister Donatella Versace (who took the creative reins of the company after his untimely and tragic death), Carla Sozzani was a key figure in establishing the city of Milan as a fashion capital.

Versace entered the fashion world at a very young age, working in the atelier run by his mother, a seamstress by trade.

His Calabrian roots, his work as a costume designer, and a Milanese sensibility—evident in his rigor and determination to conquer his audience, primarily VIPs and entertainment figures—made Versace a maison that immediately stood out for its bold, luxurious, and sensual style. It remains highly desirable today.

‘Reggio is the realm where the fairytale of my life began: my mother's tailor shop, the haute couture boutique. The place where, as a child, I began to appreciate the Iliad, the Odyssey, the Aeneid, where I began to breathe the art of Magna Graecia,' Versace recounted, in the 1990s. In 1972 he moved to Milan to work as a clothes designer, creating his first collections for Genny, Complice and Callaghan. In 1975 he presented his first collection of leather clothes for Complice.

On March 28, 1978, at the Palazzo della Permanente in Milan, Gianni Versace presented his first womenswear collection.

Versace revolutionized the fashion world with his innovative creations, characterized by vibrant colors and eye-catching prints, all imbued with the Milanese glamour that captivated the world, especially pre-Y2K.

The brand is renowned globally for its bold use of prints inspired by classical art and pop culture. The Medusa logo became a symbol of luxury, while Gianni Versace remains a revolutionary who broke traditional molds. Donatella Versace has, over time, adapted the brand to the evolution of culture and society, injecting contemporaneity and dynamism into the collections.

A long list of singers and actors wear Versace

One above all: Madonna, who is one of the icons most associated with Versace, having worn his designs on numerous occasions, both on and off stage. Princess Diana was also a great admirer of Versace, and her looks by the brand have become iconic. Jennifer Lopez wore a green Versace gown to the 2000 Grammy Awards, a moment that has become one of fashion's most iconic. Elton John frequently wore creations by his friend Gianni Versace, as did supermodels Naomi Campbell and Cindy Crawford, who walked the runway and wore Versace for years.

Today, Versace produces women's, men's, and children's ready-to-wear, shoes, handbags and accessories, the Atelier Versace haute couture line, eyewear, fragrances, and watches, Versace Home furnishings, and the Versace Jeans Couture line. The company boasts 230 boutiques and 638 authorized retailers worldwide.

Until 2018, the label was under the umbrella of Capri Holdings, which then sold it to the Prada Group.

For the Fall/Winter 2025 collection, Donatella Versace, who remains as chief brand ambassador after passing the creative helm to Dario Vitale, revisited the past to forge a new path towards the future, retracing Versace's core values: freedom, individuality, and integrity. The designs and motifs of Versace Home, one of the first lifestyle lines created by a fashion house, permeated the runway. A meeting of neoclassicism and contemporary design characterized the collection, evoking the interiors of Gianni Versace's residences. Sculptural and theatrical silhouettes alternated with punk-style deconstructions. Atelier Versace bustier dresses with hyper-structured, print-lined skirts defied gravity on the runway, alongside voluminous spencer jackets and knitwear, tailored coats, and the playful skirts of padded evening gowns.