Refile: Prada gets exclusive four week access to Versace financial data, source says
20/02/2025 18:00
(refiles to fix day in first paragraph)
MILAN, Feb 20 (Reuters) - Italian luxury group Prada
1913.F has been given access, ahead of any other potential
suitors, to the financial data of smaller rival Versace which
owner Capri Holdings CPRI.N has put up for sale, a source
close to the matter said on Thursday.
Prada has four weeks to conduct its assessment, the source
said, as it weighs an acquisition that would mark a significant
shift in strategy. No decision on whether to actually pursue the
deal has yet been taken at this stage, the source added.
Capri Holdingss CPRI.N is working with Barclays to explore a
sale of its Versace and Jimmy Choo brands, sources told Reuters
this year.
Prada and Barclays declined to comment. Capri Holdings was
not immediately available for a comment.
Prada last completed acquisitions of other brands in the
late 1990s and has been focusing on internal growth since then,
defying expectations it could aspire to create a larger Italian
fashion hub.
The acquisition of Versace would allow Prada to target a
different customer group, with tastes far from Prada's trademark
minimalism.
But the Hong-Kong listed group would also have to deal with
a challenging turnaround of the Medusa-logo brand, industry
sources said.
Versace reported a 15% decline in revenues in the third
quarter ending on December 28 and the operating loss increased
to $21 million in the period, from $14 million a year earlier.
Capri Holdings expects Versace's revenues to drop to $810
million in the 2025 fiscal year and the operating margin to
break even in the following fiscal year, according to long term
financial targets published on Wednesday.
The brand's performance and the sector's bleak outlook could
make it hard to set a price, complicating negotiations,
according to industry sources, who said a turnaround would
require investment.
Capri Holdings, formerly known as Michael Kors, bought
Italian luxury brand Versace in 2018, for 1.83 billion euros
including debt.
The four week exclusivity deal was first reported on
Thursday by Italian daily Il Sole 24.
(Reporting by Elisa Anzolin; Editing by Valentina Za and Elaine
Hardcastle)
((mailto:elisa.anzolin@thomsonreuters.com; 0039 0266129692;))