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Prada Group Pursued Versace Turnaround Efforts

Prada is restructuring Versace operations after acquiring the fashion house for €1.25 billion.

Updated on Sept. 28, 2026 in Fashion

Bold vector editorial illustration of luxury handbags and fabric rolls, representing the restructuring of a high-end fashion house.
Prada Group has begun a comprehensive turnaround strategy for Versace, including manufacturing consolidation and retail network optimization to restore brand profitability. AI Illustration. Upload story photo >

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Prada Group has initiated a turnaround strategy for Versace following a period of declining sales and operating losses. The company is currently shifting production to its own facilities and consolidating the retail network.

Why it matters

The strategic overhaul aims to return Versace to profitability and restore brand demand at full price. Prada seeks to stabilize operations following a 20 percent revenue drop in fiscal 2025.

Versace operated 210 stores as of June, generating €305 million in revenue during the first half of 2026. Prada Group's adjusted operating margin for the same period stood at 17.4 percent.

The players

Lorenzo Bertelli

He is the executive overseeing the integration and turnaround efforts for the Prada Group.

Pieter Mulier

He serves as the chief creative officer for Versace and is tasked with defining the brand's new aesthetic.

Prada Group

This Italian luxury fashion house acts as the parent company for several high-end brands and is publicly traded.

Versace

Founded in Milan, this iconic fashion label is known for its bold designs and is now owned by Prada Group.

The details

Prada is moving Versace production to its manufacturing hub in Scandicci and reducing the total number of retail locations. These changes are intended to streamline the business and support the debut of new designs under chief creative officer Pieter Mulier.

Timeline

  1. Prada Group acquired Versace in December.

  2. Pieter Mulier became Versace chief creative officer on July 1.

  3. Versace generated €305 million in revenue during the first half of 2026.

  4. Mulier's first Versace collection will launch in May 2027.

  5. The transition to new designs across Versace stores will extend into 2028.

Culture Shift

This move mirrors the established trend of luxury brand consolidation where parent conglomerates centralize production to maintain brand prestige. It marks a shift away from independent boutique operations toward a more integrated, centralized model common in the luxury sector.

Shoppers can expect a more curated and limited retail experience as the company reduces its store footprint. Over the coming years, customers will see new collection designs reflecting the brand's updated creative direction.

The takeaway

Prada is betting that centralizing production and tightening retail control will restore Versace to its former profitability. Consumers should anticipate a shift in the brand's availability and aesthetic focus as these operational changes take hold through 2028.

What happens next

Pieter Mulier is scheduled to debut his first collection for Versace in May 2027, with the total retail store network expected to be smaller at that time.

Further reading

For additional context on industry trends, visit the Fashion section.

Source note: This article includes information reported by Observer.

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