How are things going at Versace?

Last week, the Capri Holdings investor meeting took place. The company owns Versace, which, until recently, was supposed to join Tapestry’s portfolio after the mega-merger of the two luxury groups. However, the deal was canceled in November 2024, causing some turmoil within Capri Holdings, which is now trying to implement a cautious downsizing to focus on its most profitable assets. According to persistent rumors, Capri Holdings may decide to sell Versace, a significant ownership transition in the fashion industry that, according to gossip, has attracted interest from potential buyers such as Prada Group and former Gucci CEO Marco Bizzarri, making the brand one of the most interesting acquisition targets of 2025. «There are very few historic brands available on the market, and if the asking price is reasonable, interest will certainly be high», said Joëlle Grunberg, a partner at McKinsey, to Vogue Business. During the Capri Holdings Investor Day on February 19, Emmanuel Gintzburger, CEO of Versace, outlined the brand’s strategic plan to reach $1.5 billion in revenue after 2028, with a recovery expected from the 2027 fiscal year. During the meeting, there was no mention of a potential sale of the brand (though other sources say that the Prada Group has already started to investigate its business structure further), but several interesting data points emerged that provide insight into the current situation. Although it now seems clear that the rumors about a potential departure of Donatella Versace may be unfounded—if not unthinkable—the many upcoming changes indicate that the brand’s management has also realized that its formula needs, if not a revolution, at least a refresh and update to regain relevance in an increasingly saturated and competitive fashion market.

Versace’s strategy for the coming months will focus on renewing its product offering and enhancing the consumer experience, continuing the repositioning path initiated two years ago. The brand aims to represent 24% of Capri Holdings’ total revenue, with ambitious goals in accessories, footwear, and menswear— the latter being much weaker than womenswear. The objective is to increase accessories revenue to $600 million (essentially doubling it from the current $300 million), footwear to $250 million, and menswear to $300 million. Growth in the accessories segment already shows promise: the Tag bag, launched last November, already accounts for 20% of full-price sales. In footwear, the plan is to strengthen the lineup by building on bestsellers like platforms and sneakers, which have already performed well, while the new collection will include heels and formal shoes to expand the male customer base. For menswear, the goal is to increase revenue by 25% by expanding into tailoring and sportswear and addressing the historic imbalance favoring the female clientele. Despite declining profits, customers are still present: according to the investor meeting, in 2024, Versace’s global database grew by 1.1 million new customers, representing 15% of total growth. Brand awareness remains solid, with a media impact value of $1.2 billion (+5% year over year) and a place in the top 10 global luxury brands according to Launchmetrics. However, concerns arise from Versace’s drop from sixth to fourteenth place in the Q4 Lyst Index compared to Q2—suggesting that while the brand has a broad customer base, it struggles to attract new audience segments eager to wear its products.

Geographically, the most promising growth areas are Asia and the Middle East, despite a decline in revenue last quarter: earnings fell by 15% to $193 million, with drops of 21% in the Americas, 13% in EMEA, and 11% in Asia. On the e-commerce front, the company aims to double revenue to $250 million through omnichannel investments over the past two years. «Our website must be the brand’s complete showcase and a key traffic generator», explained Gintzburger. As expected, all licensed businesses for eyewear, perfumes, and watches continue to thrive, generating $2 billion in retail revenue. An interesting note: Vice President of Marketing Georgina Scholtens-Day hinted at the launch of an ultra-luxury line set to debut during the next Milan Fashion Week—many speculate that the brand is preparing to officially relaunch Atelier Versace, its Haute Couture line absent from runways since 2017. A potential revival of the line could significantly enhance the brand’s perception, but is that really the issue? The rumored arrival of Dario Vitale, design director at Miu Miu, suggests that Versace’s management might have realized that the brand needs a new narrative: in an oversaturated market, it is crucial to be hyper-recognizable beyond just logos and archival prints, offering customers a distinct and unmistakable style with fresh ideas. Today, it’s hard to associate Versace with a specific “look,” whereas the most relevant brands today all have one—whether it’s a particular style, proportion, or even signature products or accessories.

Even if it means sacrificing the sales of logoed slides and bathrobes or black-and-gold prints, Versace will regain its dominance among fashion brands when its identity is no longer a filter that can be applied to an undefined range of products but rather a true look— a precise and almost “auteur” taste that extends beyond mermaid gowns that modern women don’t always wear, classic gold Medusa motifs, and baroque prints. On one hand, oversimplification of the offering, and on the other, excessive reliance on prints and past-inspired ideas, demonstrate a vision of fashion tied to an aesthetic that, while drawing from the glamour that made Versace famous, now risks appearing somewhat outdated. The imagery of opulence and dazzling luxury, once synonymous with exclusivity and the international jet set, has transformed into a style that is more commercial and less relevant, where basic pieces adorned with logos on buttons and tags fail to truly express the brand’s identity. When identity becomes mere decoration, customers can sense it and may choose to invest in a brand that offers products they cannot find elsewhere— after all, exclusivity is also about that. Versace’s dangerous tendency to rely solely on its archives and depend on past references betrays, at best, excessive commercialization, and at worst, a lack of fresh ideas to keep the audience engaged. Given the growth in its customer base, the issue is not awareness or the product itself but the brand’s identity (and thus its desirability), which appears unfocused. Perhaps it has fallen victim to over-reliance on “iconic codes” that have flattened its narrative. The Medusa’s gaze, in short, should look more to the future than the past.