Prada rules out Armani bid as it focuses on Versace turnaround

Prada Group is concentrating on reviving Versace following its €1.25 billion acquisition and is not considering a bid for rival Italian luxury group Armani, Chief Executive Andrea Guerra revealed. 

Summary of events: 

• Prada completed its €1.25 billion acquisition of Versace from Capri Holdings in December 2025.
• Versace generated €305 million in first-half revenue as Prada focused on full-price sales, retail execution and organisational integration.
• As part of a wider succession plan, Armani’s heirs are preparing to sell an initial 15% stake in the business, although weak luxury market conditions could delay the process.

Prada Group CEO Guerra has told Reuters that the business is directing capital and management attention towards its turnaround plan for Italian luxury brand Versace, rather than joining Armani’s ownership process.

This follows the news that Armani’s heirs are preparing to sell an initial 15% stake in the Italian luxury brand as part of a wider succession plan following the death of the brand’s founder in 2025, although weaker luxury demand has reportedly complicated the sale. 

Prada begins Versace reset

Prada completed its acquisition of Versace from Capri Holdings for $1.375 billion (£1.06 billion) in cash in December 2025, returning the Milanese house to Italian ownership. 

The deal brought Versace into a portfolio led by Prada and Miu Miu, with the group focusing on reshaping the business to prioritise higher-quality products sold at full price, with efforts focused on store operations, client relationships and organisational integration.

In financial results from April, Prada Group reported that Versace had contributed €143 million to its first-quarter net revenue.

This increased to €305 million for the first half of the year, with Prada Group commenting that Versace was progressing in line with expectations. Prada Group’s total net revenue rose 16% to €3.048 billion in the first six months, with retail sales increasing by 12% to €2.633 billion. 

Alongside new ownership, Versace also appointed former Alaïa Creative Director Pieter Mulier as its new Chief Creative Officer from 1 July. He succeeded Dario Vitale, who departed shortly after the acquisition closed, becoming Versace’s third creative leader in less than a year.

Mulier’s arrival also followed the departure of Versace’s Chief Executive Emmanuel Gintzburger in June, with no replacement having been announced so far.

Donatella Versace had already stepped away from design in March 2025 to become Chief Brand Ambassador. 

Armani prepares initial 15% sale

Prada’s position removes one potential Italian bidder as Armani’s heirs implement the succession plan established by Giorgio Armani, who died aged 91 in September 2025.

His will requires an initial 15% stake to be sold within 18 months of his death, pointing to March 2027. However, the process could extend beyond that date as weak luxury trading conditions have slowed preparations.

The preferred candidates to acquire the stake reportedly are LVMH and Armani’s two commercial partners, L’Oréal and EssilorLuxottica. The group has previously weighed an equal allocation of the stake, giving each business 5%. Notably, L’Oréal holds Armani’s beauty licence until 2050, while EssilorLuxottica manages its eyewear business.

Under the wider succession plan, Armani’s heirs are instructed to sell a further 30% to 54.9% stake within three to five years, effectively transferring control of the company. An initial public offering is available as an alternative route for that later stage.

Armani’s Chief Executive Officer Giuseppe Marsocci, who appointed in October 2026, is reportedly preparing a five-year business plan for the business ahead of advisers being appointed to oversee the potential stake sale. 

Armani sales decline as EBITDA rises

Armani Group’s latest annual results showed 2025 sales falling 2.8% to €2.192 billion, while consolidated EBITDA increased 3.2% to €152.7 million.

Direct retail sales rose 2% at constant exchange rates, but indirect channels declined 7% as wholesale orders fell. Giorgio Armani boutiques and Armani Privé recorded double-digit growth, supporting the group’s emphasis on full-price and high-end distribution.

That continuity was also visible at Armani Privé’s autumn/winter 2026/27 couture show, the second couture collection designed solely by Silvana Armani. The collection featured precisely cut trousers and floor-length gowns, continuing the house’s established approach to red-carpet dressing.