According to the report, fashion giant Prada has ordered a Versace review as it rates potential bids for Italian brands and is therefore valuing potential bids for Italian brands.
Milan-based Prada has emerged as a rare winner in the luxury sector, especially as other fashion houses struggle with poor sales, challenging the decline in demand in China.
Prada works with advisors to review Versace and evaluate potential bids after accessing the brand's latest financial figures. People familiar with the issue told Bloomberg. There is no guarantee that a review will lead to an offer, they said.
Capri stocks jumped 4% on Wednesday morning.
Prada and Capri did not immediately respond to requests to post comments.
Like other luxury fashion brands, Versace reports brooding revenue over the past year as China's slowdown has led shoppers back buying.
Founded in 1978, the brand reported revenue of $193 million in the third quarter last year. This is a 15% decrease from the previous year.
In the same quarter, Versace, known for its bold design and vibrant colors, revealed an operating loss of $21 million. That loss rose from $14 million in 2023.
If Prada is making an offer, it is possible that Versace, founded by Milan designer Gianni Versace, has returned to the Italian company.
Meanwhile, Prada, a company open to the Hong Kong market, appears to be avoiding a slowdown in sales by colliding with the rest of the industry. Group sales rose 18% in the nine months ended September 30th. From the previous year.
Prada's success is largely due to trendy brand Miu Miu more than doubled sales in the third quarter, bringing a 105% rise from the previous year.
MIU The MIU brand is gaining popularity among young consumers. Its fashion designs are worn on the red carpet by popular young stars such as Sabrina Carpenter and Sydney Sweeney.
Actor Elle Fanning is the brand “Miu Miu Girl,” and has opened the Miu Miu fashion show and promoted the latest fragrances in commercials.
“As for Miu Miu, it's now four years since the team decided to head in a certain direction in terms of image, identity and creativity,” said Andrea Gurera, CEO of Prada, who said last year. He spoke to investors on a revenue call.
Guerra said the company plans to open more Miu Miu stores and expand its retail portfolio to new locations.
Capri, also owned by Michael Kors and Jimmy Chew, hired Barclays PLC to explore several brand options after the $8.5 billion merger with tapestry, according to Italian media.
