Italian brand Prada is among potential bidders for the Versace fashion house, which is owned by Capri Holdings. In November, Tapestry abandoned its $8.5 billion bid for Capri.
After the deal to create an American luxury goods conglomerate fell through, Capri executives did not rule out the possibility of selling their brands separately, incrussia.ru reports with reference to reuters.com
Capri has hired Barclays to explore strategic options, including the sale of the Versace and Jimmy Choo brands. The entire Capri Holdings group may also be put up for sale.
Hong Kong-listed Prada shares fell 0.4%. At the same time, Prada is not succumbing to the industry downturn: in the third quarter of 2024, its sales grew by 18%.
Versace accounts for a fifth of Capri’s annual revenue, or $1 billion, of the group’s total sales of $5.2 billion. In November, Capri reported a drop in quarterly revenue, which was caused by a global slowdown in demand for luxury goods.
As of 2018, the Versace fashion house was valued at about $2 billion. It was bought for that amount seven years ago by Michael Kors Holdings co-owner designer Michael Kors. In 2017, he also acquired the Jimmy Choo shoe brand for $1.2 billion.
In 2023, Versace’s turnover exceeded $1.1 billion, but the company’s development was restrained by a decline in global demand, especially in China. In the second quarter of 2024, turnover decreased by 28.2% compared to the previous year and amounted to $201 million. The operating loss reached $3 million.
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