Prada eyes potential bid for luxury fashion brand Versace

Fashion giant Prada has ordered a review of Versace as it evaluates a potential bid for the Italian brand, which is currently owned by global luxury group Capri Holdings, according to a report.Milan-based Prada has emerged as a rare winner in the luxury sector as other fashion houses have suffered from a sales slump, particularly challenged by falling demand in China.Prada is working with advisers to review Versace and evaluate a potential bid after it gained access to the brand’s latest financial figures, people familiar with the matter told Bloomberg.There is no guarantee the review will lead to an offer, they said.Capri shares jumped as much as 4% Wednesday morning.Prada and Capri did not immediately respond to The Post’s requests for comment.Like other luxury fashion brands, Versace has reported dismal earnings over the past year as an economic slowdown in China has shoppers pulling back on purchases.The brand, founded in 1978, reported $193 million in revenue in the third quarter last year – down 15% from the year before.In the same quarter, Versace — which is known for its bold designs and vibrant colors – disclosed a $21 million operating loss.

That loss was up from $14 million in 2023.If Prada does make an offer, a potential deal could see Versace, which was founded by designer Gianni Versace in Milan, returned to an Italian company.Meanwhile, Prada, a publicly traded company on the Hong Kong market, has seemingly escaped the sales slowdown hitting the rest of the industry.The group’s sales rose 18% in the nine months ended Sept.

30.from the year before.Prada’s success is largely due to its trendy brand Miu Miu, which more than doubled its sales in the third quarter — soaring 105% from the year prior.The Miu Miu brand has gained popularity among young consumers.

Its fashion designs have been worn on red carpets by popular young stars like Sabrina Carpenter and Sydney Sweeney.Actor Elle Fanning is the brand’s “Miu Miu girl,” opening a...