Prada's Bold Move: Versace Acquisition Fuels 8% Revenue Growth

Prada reports an 8% increase in organic revenues for 2025, largely attributed to the growth of its Miu Miu label. The acquisition of Versace has affected margins but is seen as a long-term strategic move. In 2025, Versace generated 684 million euros in revenues.

Italian luxury giant Prada has announced an impressive 8% leap in its 2025 organic revenues, propelled by its burgeoning subsidiary, Miu Miu. Despite this, the recent acquisition of Versace has slightly dented profit margins, continuing to exert pressure on the company's profitability this year.

Versace, acquired for 1.3 billion euros last December, marks a significant strategic pivot for Prada, which had generally avoided such purchases. Now, Prada aims to revive Versace's iconic bold and glamorous aura, with creative and leadership changes in the pipeline.

The plan includes appointing Pieter Mulier as the new creative director and scaling back some retail operations. Prada's future strategy focuses on integrating Versace while expecting the label to show progressive improvement in profitability from 2027 onwards.