Robert Besser
07 Mar 2025

MILAN, Italy: Prada CEO Andrea Guerra suggested this week that the Italian luxury brand is keeping its options open regarding potential acquisitions, following reports linking it to possible deals for Versace and Jimmy Choo.

Speaking after Prada reported a 21 percent rise in operating profit for 2024, Guerra did not confirm any specific plans but hinted at a willingness to explore opportunities. "On one side, we are focused on our brands. On the other side ... when things come around, you'll look at them," he said during a post-earnings call.

Last month, a source told Reuters that Prada had been granted access to Versace's financial data. Over the weekend, Bloomberg News reported that Prada had moved closer to a deal, potentially agreeing on a price of nearly 1.5 billion euros (US$1.6 billion) for the fashion house founded by Gianni Versace in the 1970s. His sister, Donatella Versace, has been its creative head for more than two decades.

Italian newspaper Corriere della Sera reported that Prada is interested in acquiring both Versace and Jimmy Choo from their current owner, Capri Holdings, for a total of between 1.5 billion and 2 billion euros. However, Prada's Chief Financial Officer Andrea Bonini declined to comment on "rumors" regarding potential acquisitions.

Despite broader concerns about slowing luxury demand, Prada has maintained strong growth. The group, listed in Hong Kong, reported a 17 percent increase in net revenues for 2024, reaching 5.4 billion euros ($5.7 billion), in line with analyst expectations. Prada ended the year with a net cash position of 600 million euros, providing financial flexibility for possible expansion.

Growth was solid across all regions except the Americas, where revenue rose nine percent, improving in the second half of the year. The Asia Pacific market performed well, recording 13 percent growth, with notable improvements in the final quarter.

Retail sales, which make up the bulk of Prada's revenue, rose 18 percent, primarily driven by the success of its smaller Miu Miu brand, which saw an impressive 93 percent growth over the year. In contrast, sales at the flagship Prada brand increased more moderately, at around four percent year-on-year.

Looking ahead, Guerra expressed confidence in Prada's momentum. "For the year ahead, we retain our ambition to deliver solid, sustainable, and above-market growth," he said in the earnings statement.