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Versace owner Capri jumps on Prada moving closer to purchase

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March 4, 2025

Capri Holdings Ltd. shares jumped as the U.S. company moves closer to a sale of its Italian luxury brand Versace to Prada SpA.

Versace – Fall-Winter2025 – 2026 – Womenswear – Italie – Milan – ©Launchmetrics/spotlight

The Italian family-owned company and Capri have agreed to a price of as much as €1.5 billion ($1.6 billion) for the fashion house founded by the late Gianni Versace in 1978, people familiar with the matter said late Sunday.  

Capri Holdings rose as much as 9.6% before the start of regular trading in New York on Monday. Prada shares gained as much as 4.1% in Hong Kong, where the stock was listed in 2011 in a nod to the importance of the Chinese market.

A potential acquisition of the fashion house renowned for its flashy ready-to-wear clothing designed by Donatella Versace — sister of the founder — would allow Prada to create a larger Italian player to compete with global luxury groups such as LVMH and Kering SA.

Capri, which also owns the Michael Kors and Jimmy Choo brands, has been struggling to revive sales growth and last month provided revenue guidance that missed analysts’ estimates, saying a turnaround will take some time. 

Rating cut

Its planned $8.5 billion merger with Coach owner Tapestry Inc. collapsed last November after a judge agreed with the Federal Trade Commission’s opposition to the deal — adding to Capri’s difficulties. Its debt was downgraded to below investment grade by S&P Global Ratings in February.

Milan-based Prada and Capri could finalize a deal for Versace this month, said the people, asking not to be identified because discussions are private. Talks are progressing after initial due diligence didn’t find any risks, the people said.

The timing and valuation could change and negotiations could still fall apart, the people added. Capri, which bought Versace in 2018 for about €1.8 billion, didn’t immediately respond to requests for comment on Sunday. Prada declined to comment.

Prada emerged as one of the luxury sector’s winners amid a global downturn for high-end fashion items, and is set to report earnings Tuesday. Its sales surged in the third quarter of last year on the back of its Miu Miu brand, a label popular with younger consumers.

A purchase would run counter to a decades-long trend of Italian fashion groups, including Gucci and Valentino, being taken over by foreign firms. 

“Prada would be well positioned to realise Versace’s brand potential in the long term, potentially paving way for the group to become Italy’s answer to the French luxury conglomerates,” UBS Group AG’s analysts led by Susy Tibaldi said in a Feb. 28 note.

The aesthetics of the minimalistic Prada and “maximalist” Versace “are polar opposites” and wouldn’t run the risk of cannibalization, the UBS analysts said in a note. 
 



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ASOS launches Arrange premium brand with focus on design and elevation

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ASOS has a lot of headline-grabbing activity going on at the moment and following the recovering e-tail giant’s huge strategy announcement last week, now it has unveiled a brand new premium label.

ASOS Arrange

Called Arrange, and available exclusively via the webstore, it blends “directional design with a feminine edge”, we’re told. The company also said the label is “bringing a unique take on elevated dressing to ASOS’s audience of fashion-loving customers”.

“London-born and women-led”, Arrange offers “a capsule of standout occasion dresses and luxe essentials. Combining a couture sensibility with a practical mindset, each piece is designed and pattern-cut in-house from premium materials, and sized inclusively (from UK 4-30)”.

It’s interesting that the launch comes at the same time as rival Boohoo Group relaunches and rebrands PrettyLittleThing and it too is talking about luxury and elevation. It seems businesses once closely associated with fast fashion are aiming to move beyond that into a more highly-valued arena — and perhaps to focus less closely on a core 20-something audience.

ASOS Arrange
ASOS Arrange

Prices reflect this. While not at luxury level, they’re far from the ‘buy it in every colour and wear it just a few times’ pricing of fast fashion’s heyday.

For instance, a chiffon pleat maxi dress is £160, a cutwork dress is £180, an embellished halter top is £120, a geo sequin dress is £250, a barrel jean is £65, leather city shorts are £150, a blazer is £120, and a knot detail T-shirt is £35.

ASOS said the new line’s signature design details – “oversized paillettes, hand-painted prints, bold colours, [and] experimental silhouettes” – appear throughout the collection.

Meanwhile the e-tailer said the accompanying campaign “spotlights the collection’s distinctive aesthetic: beautiful craftsmanship and unexpected pairings of cut, colour, proportion and texture. A dramatic embellished skirt is pared back with an oversized white T-shirt; an ice-blue trapeze top is styled with tobacco suede trousers; a red co-ord reveals an impressive attention to detail in its white contrast stitching.

“A selection of signature pieces, like the barrel-leg Sydney jean, recur from season to season – putting a refined spin on the most-wanted silhouettes and inspiring collection and curation over time”.

ASOS Arrange
ASOS Arrange

Vanessa Spence, executive VP of Creative at ASOS, said “the designers’ passion for this premium brand shines through in the level of detail and craftsmanship in the collection”.

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Kipling stages first-ever London event for G.rilla Girlz launch

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Bags label Kipling has hosted its first-ever event in London, which it said “sets the stage for an exciting new chapter for the brand in the UK”.

Kipling

The event — at Village Underground in Shoreditch — late last week was staged to support the unveiling of its latest collection, G.rilla Girlz, “while celebrating its most iconic designs”. 

As part of a 360-degree marketing activation, the event brought together influencers, content creators, industry leaders and press for an immersive experience in support of a collection that’s described as “fresh and outgoing… designed for the now. It’s not just about bags, it’s a whole vibe. Iconic styles are reimagined with bold colours and smooth recycled satin, designed for the trendsetters who aren’t afraid to make a statement – unapologetically Kipling”.

It added that the G.rilla Girlz offer “was designed to match a unique vibe for every woman, making these bags the perfect companions for all lifestyles. The Kipling monkey played a starring role, reinforcing the brand’s core values of playfulness, creativity, and self-expression”.

The company said Village Underground “was carefully chosen to reflect the brand’s bold and playful energy, featuring a striking set-up that blended fur, metallic textures, and dynamic lighting, all paying homage to Kipling’s signature monkey mascot”.

Beyond the event, it has launched a two-week out-of-home campaign, featuring fly-postering across key locations in London, Belgium and Spain. 

Kipling

The highlight was a giant inflatable of Kipling’s signature monkey at King’s Cross Station last week. To celebrate, “Kipling invited fans to join the moment, with a few lucky winners receiving an invitation to the exclusive event”.

There was also a social media takeover to “showcase Kipling’s versatile bags in everyday moments, led by top influencers and creators”. 

Away from the London event, the brand’s key retail partners in other markets, including Inno (Belgium), El Corte Inglés (Spain) and Galleria (Germany), also activated in-store displays featuring furry installations, “bringing the campaign to life in a tactile, engaging way”.

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Shop price deflation continued in February as fashion stores discounted heavily says BRC

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Shop price inflation stayed as shop price deflation in February with the latest figures from the British Retail consortium showing prices fell 0.7% year on year last month. That was the same dip as it had reported in January. 

Photo: Pixabay

And for non-food products, the fall in the BRC-NIQ Shop Price Index was even more marked at 2.1%, a bigger drop than the 1.8% deficit seen in January.

The overall figure was skewed by the fact that food prices continued to rise, edging up by 2.1% in February compared to just a 1.6% increase in January.

And while food prices may not seem directly linked to fashion retailers and brands, the fact is that with prices for necessities still rising, consumer are more likely to cut back on discretionary items and fashion is frequently cited as the products they’ll leave on the store rails when money is tight.

That’s a key reason why non-food prices continue to fall with BRC chief executive Helen Dickinson saying that “discounting is still widespread in fashion as retailers tried to entice customers against a backdrop of weak demand”.

She expects inflation to rise across the board as the year progresses “with geopolitical tensions running high and the imminent £7 billion increase in costs from the Autumn Budget and the new packaging levy arriving on the doorsteps of retailers”.

The BRC expects food prices to be up by 4%+ by the second half of the year, and while Dickinson didn’t give a prediction for non-food prices, chances are that even more discounts will be required.

Mike Watkins, Head of Retailer and Business Insight, NielsenIQ, said: “With many household bills increasing over the next few weeks, shoppers will be looking carefully at their discretionary spend and this may help keep prices lower at non-food retailers.”

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