Prada posts double-digit growth in 2024 in a down market as it eyes Versace acquisition

ROME (AP) — The Prada Group on Tuesday posted double-digit growth for the fourth consecutive year, bucking the luxury sector slide amid talk of a possible Versace acquisition.

The group, which owns the Prada and Miu Miu fashion brands along with Church’s footwear, reported a 17% boost in revenues to 5.4 billion euros ($5.7 billion) last year from 4.7 billion euros in 2023. Retail sales rose 18% to 4.6 billion euros in the period.

The Prada brand, which accounts for the bulk of earnings, reported sales were up a solid 4%, while they nearly doubled at younger Miu Miu. The Prada Group results are against market trends, with the luxury sector as a whole contracting last year for the first time since the Great Recession.

“This success underscores the enduring relevance of our brands, which comes from an unwavering focus on product innovation, quality, craftmanship and a unique ability to read contemporaneity,’’ said Prada Group Chairman Patrizio Bertelli.

Prada has been eyeing the possible acquisition of the rival Versace brand, owned since 2018 by the U.S. group Capri Holding, which includes Michael Kors and Jimmy Choo.

“I think it's on everybody's table,’’ Miuccia Prada said after presenting Prada’s Fall-Winter 2025-26 collection last week.

Asked about Prada's investment plans during an analyst conference call, CEO Andrea Guerra said the company's focus is on growing its current brands, but added it would be “arrogant” not to evaluate opportunities that present themselves. He did not mention Versace by name.

Italian media have reported that the sale would value Versace at 1.5 billion euros ($1.6 billion), a considerable discount on the $2 billion paid by Capri Holding. The current owner has been struggling to reposition the stalwart of Italian fashion, which was founded in 1978 and has been under the creative direction of Donatella Versace for more than 20 years.

Bernstein luxury analyst Luca Solca said Prada "may be getting Versace on the cheap,'' noting that Versace is a well-known name that complements Prada's existing brands.

But he added there are obstacles to a successful acquisition.

"Prada has a very bad M&A track record,'' he said. "Reviving Versace needs a lot of money, competence, management attention, and short-term sacrifice,'' Solca said.