On Apr. 10, 2025, Prada bought Versace for $1.38 billion. The Italian fashion houses have been rivals since the 1970s, making this deal a major shift in the luxury fashion industry. While Prada focuses on femininity, gender politics and the allure of ugly chic, Versace’s concept is based on flash, fantasy and the fence between “bad taste” and elegance.

The deal benefited both parties. Versace was in debt, and its revenues were expected to decrease by an additional $810 million to its initial $1 billion dollar drop in 2024. This deal gives them the money they need to release more styles.. 

Prada gained a notably different style of fashion from Versace, becoming an Italian designer powerhouse. This deal closely followed Donatella Versace’s announcement on March 13, where she revealed she was stepping down as Versace’s chief creative officer. Although the official deal won’t close until the second half of 2025, many fashion fans are excited for this duo to emerge. 

Prada hopes to gain more buyers across the world, especially in the U.S., where Louis Vuitton and Gucci are the reigning fashion designers. This new combination could help Prada gain more revenue. Prada and Versace are both fashion powerhouses, and merging the two heralds great success for Italy’s high fashion industry.