Prada plans to cut outlets and lower brands at Versace

By Elisa Anzolin

MILAN, March 5 (Reuters) – Prada plans to increase full-price sales and cut secondary lines at its recently acquired Versace brand, whose first collection under new creative director Pieter Mulier in expected only in 2027.

Mulier, who joins from Richemont-owned Alaia, will take up the role in July and present his first show in early 2027.

In the meantime, the group will shut the Versace Jeans line and all other sub‑brands in ready‑to‑wear, Prada’s Finance Chief Andrea Bonini told analysts.

Prada will work instead to relaunch the top-tier Atelier Versace line with a focus on haute couture and special projects.

FULL-PRICE SALES

Prada will gradually cut channels through which Versace sells its products at discounted prices, such as factory outlets, as well as curb discount campaigns in general.

Versace currently has one of the sector’s highest exposures to outlet retail, with a recent Morgan Stanley study estimating that more than 30% of its sales come from outlets.

Its 62 brick-and-mortar outlet stores compare with 52 at Ferragamo and 54 at Burberry’s, Morgan Stanley said.

VERSACE IMPACT ON PRADA’S FINANCIAL RESULTS

Prada’s acquisition of Versace weighed on profit margins in 2025 and will continue to do so at the operating level this year, with an improvement expected from 2027.

Versace posted an operating loss last year and Prada’s goal is to limit this year’s expected operating loss to a “two-digit figure”.

While Versace will require additional investment, the group also expects to generate savings from the integration of its former rival.

Versace reported revenues of 684 million euros in 2025, and Prada expects sales to decline by a mid‑single‑digit rate at constant exchange rates in 2026.

(Reporting by Elisa Anzolin; Editing by Valentina Za)