Prada Reshapes Versace: Farewell Jeans, Hello Couture

Prada is undertaking a significant strategic overhaul of the Versace brand following its acquisition. The group intends to elevate Versace's market position by prioritizing full-price sales and significantly reducing its reliance on discount channels.

This strategy includes gradually phasing out factory outlets, which currently account for over 30% of Versace's sales, and curbing general discount campaigns. Prada's Finance Chief, Andrea Bonini, confirmed the discontinuation of the Versace Jeans line and all other secondary ready-to-wear brands.

Instead, the focus will shift to relaunching the premier Atelier Versace line, with an emphasis on haute couture and specialized projects. Pieter Mulier, joining from Alaia, will assume the role of creative director in July and is expected to present his inaugural collection in early 2027.

The acquisition of Versace impacted Prada's profit margins in 2025 and is expected to continue affecting operating profit in the current year, with improvements anticipated from 2027. Versace reported an operating loss last year, and Prada aims to limit this year's expected loss to a "two-digit figure." While Versace requires additional investment, Prada also anticipates savings from integrating its former competitor. Versace recorded revenues of 684 million euros in 2025, with Prada projecting a mid-single-digit sales decline for 2026.