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.
Many big names in UK retail had a good Christmas season — despite the sector being generally sluggish — but it seems John Lewis Partnership (JLP) may not have been one of them.
The retailer — which operates its eponymous department stores and webstore, plus Waitrose supermarkets — has missed its profit target after a disappointing festive season.
It hasn’t shared any info officially but internal documents seen by The Telegraph suggest bad news to come when it does release its results.
Those internal documents have only been shared with staff so far with the company saying that sales have fallen short of expectations and it’s unlikely to achieve its hoped-for £131 million full-year profit.
The company is said to have blamed “lower consumer confidence and weaker than expected market confidence” for the sales miss in the month to 21 December, although also the fact that key trading days fell outside the period.
Sales targets were missed at both of the firm’s chains, although the newspaper said it still claimed it outperformed rivals and staff should be “proud of our performance”.
It will be interesting therefore to see exactly what its figures were as a number of rivals have actually reported a good Christmas. If its stores have beaten other supermarkets and chains like M&S, perhaps its targets were too ambitious in the first place.
We won’t know for a while, but we do know that with M&S resurgent, JLP’s supermarkets and department stores have lost some of their lustre as the destination of choice for Britain’s middle classes.
So what were the firm’s benchmarks? Back in September it had said it was seeing strong demand and expected a significant rise in profits for the year to January. The prior year’s pre-tax profit had been £56 million and the year before that it made a loss.
It had also talked about its turnaround efforts paying off and that it was seeing a “considerable improvement” in performance, with the John Lewis chain in particular expected to benefit from a buoyant second half.
It’s been rumoured for some time that he would exit the label but it’s not yet known what his next step will be.
Jones has been widely praised for his work at Dior with his latest men’s collection shown this month being hailed as a success.
He’s been a key creative at LVMH having also designed its Fendi women’s collections. And he helmed Louis Vuitton’s menswear before he joined Dior.
The company said it “wishes to express its deepest gratitude” to the designer “who has accelerated the development of Men’s collections internationally and has greatly contributed to the worldwide influence of the House by creating an inspiring wardrobe that is both classic and contemporary, and connected to some artists of our time”.
And Delphine Arnault, who’s chairman and CEO of Christian Dior Couture,added: “I am extremely grateful for the remarkable work done by Kim Jones, his studio, and the ateliers. With all his talent and creativity, he has constantly reinterpreted the House’s heritage with genuine freedom of tone and surprising, highly desirable artistic collaborations.”
Jones meanwhile called it a “true honour to have been able to create my collections within the House of Dior, a symbol of absolute excellence. I express my deep gratitude to my studio and the ateliers who have accompanied me on this wonderful journey. They have brought my creations to life. I would also like to take this opportunity to thank the artists and friends I have met through my collaborations. Lastly, I feel sincere gratitude towards Bernard and Delphine Arnault, who have given me their full support.”
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”.
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