Milan Fashion Week ends today and with it comes new details surrounding the rumoured deal between Prada Group and Capri Holdings for the acquisition of Italian luxury brand Versace.

As reported by Italian newspaper Corriere Economia, the deal is believed to have the backing of Lorenzo Bertelli, son of Prada Group owners, Miuccia Prada and Patrizio Bertelli, and the company's chief marketing officer. The media outlet further reported that the value of the takeover could to amount to approximately 1.5 billion dollars.

Between October and December 2024, Versace recorded a 15 percent drop in sales to 193 million dollars, and an operating loss of 21 million dollars. By the end of the financial year for Capri Holdings, due to finalise in March, Versace's turnover is expected to be 810 million dollars, according to estimates released last month during the US firm's investor day. This figure is still a negative margin for the brand, with breakeven to not arrive before 2026.

Overall, Capri Holdings is forecasting a turnover of 4.4 billion dollars for 2025. The projection is divided into three billion dollars from Michael Kors, 810 million dollars from Versace and 600 million dollars from Jimmy Choo.

Prada Group 2024 results to release March 4

In the meantime, the industry eagerly awaits March 4, when the presentation of Prada Group's 2024 results will be held, during which management could better satisfy the market's curiosity.

As of September 30, 2024, Prada recorded net revenues of 3.829 billion euros, up 18 percent year-on-year. Retail sales amounted to 3.425 billion euros, increasing 18 percent year-on-year. This came above market performance for Prada, with retail sales also rising 4 percent. "Miu Miu maintains excellent growth, with retail sales up 97 percent year-on-year," management explained in a press release last October.

This article originally appeared on FashionUnited.IT. It was translated to English using AI.