ar on year in the period. Regional sales data further highlighted the group’s resilience and ability to navigate challenging market conditions. Sales in Asia Pacific grew by 13 per cent year-on-year to €1.6 billion, with Japan leading the charge with a remarkable 46 per cent increase to €656 million. The European and Middle Eastern markets also demonstrated strong performance, growing by 12 per cent and 26 per cent, respectively. Sales in the Americas rose by 9 per cent, climbing from €767 million to €830 million. Reflecting on the group’s performance, Andrea Guerra, CEO of Prada Group, expressed confidence in the company’s trajectory. “We continued to make progress in terms of brand desirability, retail productivity and strength of our organisation, with disciplined and rigorous execution across the board,” said Guerra. “Over the year, Prada confirmed its solid growth trajectory and Miu Miu reached a whole new level of visibility and scale, driven by a well-diversified total look offering.”  A strategic acquisition on the horizon? Prada Group’s strong financials came just days after reports surfaced that it was in talks to acquire fellow Italian luxury house Versace from Capri Holdings for approximately €1.5 billion. The deal, which Bloomberg reports could be finalised “within weeks”, would bring together two of Italy’s most iconic luxury fashion brands. However, sources familiar with the matter caution that the pricing and timing of the transaction could still change. Industry experts have weighed in on the potential acquisition, with mixed opinions on its strategic viability. Mathew Dixon, partner at DHR Global, sees the move as a bold but challenging bet for Prada. “Prada clearly believes Versace can be rescued and made relevant again,” he told Inside Retail. “The brand is one of the original titans of Italian fashion alongside Armani and Gianfranco Ferré and still has a lot of equity, but it will be a hard turnaround as it is a contracting business that feels out of kilter with the world at this moment.” Capri Holdings acquired Versace in 2018 for approximately €1.85 billion, including debt. Since then, the brand has faced challenges in maintaining consistent growth, with recent financial reports painting a concerning picture. In the final three months of 2024, Versace generated $193 million in revenue, down 15 per cent from the same period a year earlier. The brand is expected to post losses for the current financial year before breaking even in the next. Dixon believes that any revival of Versace would require a radical overhaul of its product and brand strategy. “It is one of the great brands in the history of fashion. To move it forward, it will require a complete relaunch of the product architecture. There are no hero products, it doesn’t play successfully in footwear or accessories. My view is that it would be impossible with any family left in the business just like Jil Sander 20 years ago. Patrizio Bertelli and Donatella Versace will be unlikely to work harmoniously together. Instead, the business needs to clear the decks and start again, with a clear, modern vision on customer and product.” From a strategic standpoint, the acquisition could provide Prada with economies of scale and access to a broader customer demographic. However, there are concerns about whether Prada has the operational infrastructure to manage Versace effectively.  “Operating as a group is very different from operating as a brand,” Dixon said. “Prada’s strength is its agility and speed of decision-making, which benefits Prada and Miu Miu. You need more strategic operational best practices to work as a group. Prada’s track record with acquisitions is poor, and I don’t see anything that suggests this will be different.” Another critical question is the financial burden of turning Versace around. While €1.5 billion is a significant investment, it may only be the beginning of Prada’s financial commitment.  “How much will Prada have to spend to turn it around before they see any return? Where will the growth come from?” Dixon questioned.  “Prada has delivered outstanding growth for the past few years and this acquisition will hit profits and drain cash in the short term, putting pressure on the share-price. Scale is important and investors will be supportive if they see Versace becoming an asset,” he said.  Further reading: A year in the red: Breaking down Lanvin Group’s double-digit sales drop.