Italy’s Prada s among the potential suitors looking at fashion group Versace, which has been put up for sale by its parent Capri Holdings, and has been working with Citi to evaluate any bid, a person with knowledge of the matter said on Friday.
U.S.-listed Capri is struggling with falling sales in a global $400 billion luxury sector where confidence has been eroded by wealthy Chinese cutting their spending and the end of a prolonged boom.
After that deal to create a U.S. luxury conglomerate fell through, Capri executives did not rule out the possibility of a potential sale of its brands.
Capri hired Barclays to look at strategic options including the sale of its Versace and Jimmy Choo brands, two people with direct knowledge of the matter told Reuters. Private equity firms and rival luxury groups are both looked at as possible bidders, one of the sources added.
One person said the entire Capri Holdings group could also be up for sale.
Contacted by Reuters, Prada, Barclays and Citi declined to comment. Capri Holdings was not immediately available for a comment.
Italy’s Il Sole 24 Ore first reported that Prada was evaluating a possible bid with Citi. The U.S. bank has worked with the Italian luxury group in the past over a dual-listing project which was put on hold.
Reuters could not establish whether Prada is still evaluating or interested in a possible bid for Versace. U.S.-listed Capri shares were up about 6% at 1520 GMT. Prada’s Hong Kong-listed shares closed down 0.4% on Friday.
“On the positive, one could argue that Versace and Prada cater to very different consumer groups”, said Bernstein analyst Luca Solca, adding that Versace has a maximalist aesthetic while Prada has a minimalist one.
Bernstein pegs the value of Versace at between $1.75 billion and $2.19 billion, not including debt.
Versace, founded in Milan in 1978 by late Italian designer Gianni Versace and still led by his sister Donatella as creative director, became known for its bold, opulent prints, including the iconic Medusa motif.
Prada, whose rigorous, intellectual style bears the imprint of creative head Miuccia Prada, has been defying the industry’s downturn with sales up 18% at constant currencies in the third quarter.
“On the negative, Prada has an abysmal past in M&A”, Solca said, citing Jil Sander and Helmut Lang as examples. Prada bought the two labels in the late 1990s and sold them a few years later, with Prada’s owner labelling them as “mistakes”.
The analyst said another challenge Prada would need to address is the reorganisation of distribution, by reducing the wholesale presence and outlets, and the renewal of Versace’s aesthetic.
Versace accounted for a fifth of Capri’s revenue in the fiscal year through March 30, 2024. Versace’s revenues dropped to $1.03 billion from $1.1 billion one year earlier, with the operating margin declining to 2.4% from 13.7%.
“We see the acquisition of Versace as a challenging turnaround. Therefore, pending further elements, we believe that Prada’s real interest in Versace is unlikely”, said analysts at Italian broker Equita, doubting a bid would emerge.
Zalando has announced Iamisigo, a Nigerian-founded brand, as winner of its Visionary Award 2025 “for its boundary-pushing exploration of artisanal craftsmanship and pioneering textile innovation”.
As well as the €50,000 prize, the label will present its collection on the runway at Copenhagen Fashion Week SS26 in August “with Zalando’s continued support through financial assistance for the show production, facilitating mentorship opportunities and tailored industry connections”.
The company said the award reflects its “commitment to supporting emerging designers who challenge conventions and inspire progress in the fashion industry”.
The brand blends heritage textiles with traditional craft techniques drawn from across Africa. It was founded by Bubu Ogisi and offers “contemporary designs with a bold, fresh perspective”.
At an exhibition at Copenhagen Fashion Week AW25 this week, the award finalists introduced their brands, presented their visions and ethos through a showcase of their hero pieces and a panel talk, hosted by Zalando.
We’re told the jury chose Iamisigo “for its dedication to blending ethical sourcing with a commitment to empowering local communities. The brand’s distinct voice, visionary and magical aesthetic challenge conventions, offering a new perspective on what it means to drive positive change in fashion; transcending gender norms, designing for spirits and energies”.
The jury also said that Bubu Ogisi “embodies the essence of a visionary in many ways, and that she is a rare creative talent working in this space today, with a brand whose output is both beautiful and miraculous”.
Deckers Outdoor on Thursday beat third-quarter sales estimates on robust holiday demand for its Hoka running shoes, but an in-line annual forecast caused the footwear maker’s shares to tumble 17% in extended trading.
Ugg
Hoka shoes with their oversized soles have been gaining market share from brands such as Nike in the sportswear category. The brand, which retails for up to $300 in the United States, have also enjoyed full-price sales.
This drove up the company’s third-quarter revenue by 17% to $1.83 billion, beating analysts’ average estimate of $1.73 billion, according to data compiled by LSEG. Deckers also raised its annual net sales forecast for a second time this year.
“The guidance looks pretty conservative and considering the beat, it’s bit of a negative read into the out quarter,” said Drake MacFarlane, analyst at MScience.
The popularity of the Hoka shoes and the success of the company’s Ugg boots and sandals has helped it post double-digit revenue growth for nearly seven quarters.
The company now expects annual net sales to increase about 15% to $4.9 billion, compared with its prior expectation of about 12% growth to $4.8 billion. Analysts estimated an increase of 14.9% to $4.93 billion.
Deckers expects annual earnings per share of $5.75 to $5.80, compared with its prior forecast of $5.15 to $5.25.
Amazon.com is increasing its advertising on billionaire Elon Musk’s social media platform X, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
Reuters
The major shift comes after the e-commerce giant withdrew much of its advertising from the platform more than a year ago due to concerns over hate speech.
In 2023, Apple also pulled all of its advertising from X and has recently been in discussions about testing ads on the platform, the report said.
Several ad agencies, tech and media companies had also suspended advertising on X following Musk’s endorsement of an antisemitic post that falsely accused members of the Jewish community of inciting hatred against white people.
Monthly U.S. ad revenue at social media platform X has declined by at least 55% year-over-year each month since Musk bought the company, formerly known as Twitter, in October 2022. He had acknowledged that an extended boycott by advertisers could bankrupt X.
Musk has become one of the most influential figures following President Donald Trump‘s re-election. He now leads the Department of Government Efficiency, which aims to cut $2 trillion in government spending.
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