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Prada heir Lorenzo Bertelli will assume a significant strategic position as executive chairman of Versace after the Prada Group finalizes its €1.25 billion ($1.4 billion) acquisition of the rival fashion house, the Prada Group confirmed Thursday. The deal is expected to close in the coming weeks.
The 37-year-old Bertelli, who has been previously identified as the future leader of the Prada Group, made the announcement during an Italian-language Bloomberg podcast on Wednesday. He currently serves as the group’s marketing director and head of corporate responsibility, roles he has held since 2019 and 2020 respectively. Bertelli is the eldest son of acclaimed designer Miuccia Prada and Prada Group chairman Patrizio Bertelli, and joined the family business in 2017 as head of digital communication.
In discussing his plans for Versace, Bertelli indicated a measured approach to his new leadership role. He stated that he does not anticipate major changes at Versace during the first year following the acquisition, as he familiarizes himself with the company and its executive team. However, he did acknowledge that the iconic fashion house has been underperforming relative to its potential.
“The brand is much bigger than the revenue that it is generating,” Bertelli noted, while emphasizing that Versace remains among the top global fashion brands. This assessment suggests future strategic shifts may be forthcoming once the transition period is complete.
The acquisition, announced in April, represents a significant consolidation within the Italian luxury fashion sector, bringing together two storied Milan-based fashion houses with distinctly different design aesthetics. Versace is known for its bold, sexy silhouettes, while Prada has built its reputation on what fashion insiders call “ugly chic” aesthetics. The deal will also unite these established brands with Miu Miu, Prada’s sister label that has recently gained significant momentum with younger consumers.
Under its current owner, U.S.-based Capri Holdings, Versace accounted for approximately 20% of Capri’s 2024 revenue of €5.2 billion. According to projections shared by Prada during a presentation on the deal last spring, Versace is expected to represent about 13% of the combined Prada Group’s pro-forma revenues, with Miu Miu contributing 22% and the Prada brand itself accounting for the lion’s share at 64%.
The acquisition comes at a time of strong performance for the Prada Group, which reported a 17% increase in revenues to €5.4 billion last year. In addition to its flagship Prada brand and Miu Miu, the group’s portfolio includes the Church’s and Car Shoe brands. Adding Versace to this mix creates a more diversified luxury conglomerate better positioned to compete with larger groups like LVMH and Kering.
Industry analysts view the acquisition as part of a broader consolidation trend in the luxury sector, as independent brands seek the resources and stability offered by larger groups amid economic uncertainties and shifting consumer preferences. For Versace, founded by the late Gianni Versace 47 years ago, joining the Prada Group potentially provides access to enhanced resources and operational expertise while maintaining its Italian heritage.
Bertelli’s appointment as executive chairman of Versace also signals the Prada family’s commitment to hands-on management of their expanding empire, even as they bring new brands under their umbrella. His dual leadership roles across the group will likely facilitate closer integration between the companies while maintaining their distinct brand identities in the competitive luxury marketplace.
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10 Comments
The luxury fashion industry is highly competitive, so it makes sense for major players like Prada to strategically acquire complementary brands like Versace. This deal could boost Prada’s market presence and brand diversity.
It will be crucial for Bertelli to maintain Versace’s distinct identity and brand equity while driving synergies with Prada.
The Prada Group’s acquisition of Versace is a bold play to expand its luxury fashion footprint. Bertelli’s appointment as executive chairman signals Prada’s intent to closely integrate the two iconic brands.
Maintaining Versace’s distinct identity while realizing synergies will be a delicate balance for Bertelli to strike.
Interesting that Prada is expanding its luxury fashion portfolio with the Versace acquisition. It will be intriguing to see what strategic direction the Prada heir brings to the iconic Versace brand.
Bertelli seems to be taking a cautious approach initially, which is prudent as he gets to know the Versace team and business.
The Prada-Versace deal represents another significant consolidation move in the luxury sector. Conglomerates are seeking to build diverse portfolios of complementary high-end brands.
It will be interesting to follow Bertelli’s strategic vision for Versace and how he aims to position the brand alongside Prada’s existing offerings.
I’m curious to see how Bertelli’s leadership and Prada’s resources could help unlock Versace’s full potential. The fashion house has long been respected for its bold, glamorous aesthetic.
A measured approach in the first year is prudent, as Bertelli assesses the strengths and challenges of the Versace business.