Prada's Next Chapter: Lorenzo Bertelli Takes the Helm at Versace Amid Revamp Plans
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Prada SpA is poised to breathe new life into Versace, with Lorenzo Bertelli, the son of Miuccia Prada and Patrizio Bertelli, set to become the fashion house's executive chairman. In an exclusive interview, Bertelli, 37, revealed that the company aims to revive Versace's global reach and restore its former glory. The acquisition, valued at €1.25 billion, marks Prada's largest purchase in its 112-year history. Bertelli sees Versace as a strategic opportunity to expand Prada's business, leveraging the success of Miu Miu, which recorded a 93% boost in retail sales last year. Adding Versace's annual revenue of $821 million will make Prada one of Italy's largest luxury firms. However, reviving Versace won't be easy. The brand's flashy designs, once a staple of the fashion world, have struggled to resonate with younger consumers. Sales fell 20% last year, and analysts are skeptical about Prada's ability to turn the brand around. Bernstein analyst Luca Solca questioned Prada's track record with mergers and acquisitions, citing past failures. Nevertheless, Solca believes that Prada didn't overpay for Versace and that the brand's maximalist aesthetic complements Prada's portfolio. Bertelli ruled out any immediate plans to invest in Armani Group, but remains open to future opportunities. He emphasized that Prada will take a gradual approach to revamping Versace, with no guarantees of immediate success. The timing of the deal may work in Prada's favor, as the luxury-goods sector shows signs of improvement. LVMH returned to growth last quarter, and Burberry Group Plc saw comparable-store sales turn positive for the first time in two years. Bertelli's appointment as executive chairman marks a new chapter for Versace, with Prada poised to inject new life into the fashion house. As Bertelli takes the reins, he remains committed to preserving Versace's unique identity while driving growth and expansion.
