Prada’s Lorenzo Bertelli Takes Helm in Versace’s Rebranding Effort

Prada moves forward in the transition of its legacy and business integration. Lorenzo Bertelli, the heir to the family’s legacy and responsible for Miu Miu’s recent growth, will be named executive chairman of Versace once the acquisition agreed upon last April closes. The executive confirmed this in an interview with Bloomberg’s Italian podcast , Quello Che i Soldi Non Dicono, in which he defended the purchase as a “difficult but necessary mission” to return the Italian brand to its global scale.

Prada agreed to acquire Versace for €1.25 billion, the largest deal in the group’s 112-year history and a move that puts the company in a new league within European luxury. With annual revenues of around $821 million, Versace will bring a distinct aesthetic to Prada’s portfolio, while reinforcing the ambition to build an Italian player capable of competing against LVMH, Kering or Richemont.

Versace’s future CEO does not foresee any immediate changes in the brand’s management team. He assures that the generational transition within Prada is taking place in a “natural and fluid” way. His vision, he explains, is to observe the business “with a certain distance” in order to make more conscious decisions in an industry subject to increasingly rapid cycles.

A former rally driver, Bertelli has assured that he has no regrets about joining the family business. Lorenzo Bertelli continues today as a Prada executive, where he is responsible for marketing and sustainability and is the central figure in the family succession. The group has advanced its intention to place him as executive chairman of Versace once the integration of the acquired brand into Capri is completed, but the appointment is not yet effective and has no public date. The transition is therefore underway, but is still in the preparatory phase.

Lorenzo Bertelli will take over as chairman of Versace once the acquisition is completed

“When we ask about Versace anywhere in the world, it is always in the top five recognized brands,“ said Bertelli, 37. “The brand is much bigger than its current turnover,“ he added. His diagnosis agrees with the experts. Versace has a very high notoriety, but the business is weakened.

Capri Holdings failed to right the course since it took control in 2018. The group tried to moderate the brand’s baroque codes and raise prices, but sales fell 20% last year. The company is accumulating losses, is overexposed to the wholesale and outlet channel, and its direct retail network is too small to sustain margins.

The Prada family discussed the decision “for a long time”. Bertelli argues that part of the strategy for Versace will replicate the learning obtained with Miu Miu, the brand that has become the driving force of the group: in 2024, its retail sales increased 93% to over 1.2 billion euros, driven by young consumers and a simultaneous repositioning of product, price and narrative.

Versace thus becomes the key player in consolidating a major Italian player in a context in which numerous national icons have passed into foreign hands. LVMH controls Fendi and Loro Piana; Kering, Gucci; and Valentino is in the hands of Mayhoola and Kering.

Versace was part of the Capri Holdings portfolio before returning to Italian hands

The context is in our favor. After several quarters of slowdown, global luxury is starting to show signs of recovery: LVMH has returned to growth and Burberry has posted its first positive sales in two years. According to analysts, Versace’s current losses are already discounted in Prada’s valuation, which can afford to “grow more slowly but on a more solid footing”.

Bertelli has ruled out, for now, other corporate operations. On rumors of a possible sale of the Armani Group in the future, the executive has been blunt: “It is not clear what the family will want to do.“ Prada will focus on the integration of Versace, although he is keeping the door open. “We will look at any opportunity, walking blindly is dangerous,“ he concluded.

The group raised its turnover by 6% in the first nine months of the financial year, to €4.07 billion, and posted a 9% advance at constant exchange rates, in line with the first half. The boost came from Miu Miu, which increased sales by 41%, and from regions such as the Middle East, the Americas and Asia-Pacific, while Prada moderated its decline to 1.6%.