In a major shake-up for the luxury fashion industry, Donatella Versace is set to step down as the chief creative officer of Versace, ending a nearly three-decade reign over the iconic brand. The announcement, made by Versace’s parent company Capri Holdings on Thursday, has fueled speculation that a sale to Prada is imminent.
Donatella, who took over the brand’s creative direction after the tragic murder of her brother Gianni Versace in 1997, has been a defining force behind its bold and provocative aesthetic. She will now transition into the role of chief brand ambassador. Replacing her as creative chief is Dario Vitale, the former design and image director at Miu Miu, a subsidiary of Prada. Vitale will officially take the reins on April 1.
The timing of this leadership change is particularly intriguing as Prada is reportedly close to finalizing a deal to acquire Versace from Capri Holdings for approximately $1
R18.55.5 billion (R29.77 billion). Industry analysts believe the move could be part of a strategic overhaul before the takeover.
A Brand at a Crossroads
Industry expert David Swartz from Morningstar commented on Versace’s recent struggles, noting that the brand has lost some of its former relevance compared to other European luxury houses. “Versace has been struggling, so it’s not surprising that a change is being made,” Swartz said. “I don’t know if bringing in Dario Vitale is directly related to the potential sale to Prada, but it seems like it makes it even more likely.”
Prada, which has also been rumored to have its sights on acquiring Jimmy Choo, another Capri brand, is looking to expand its luxury empire. If the deal materializes, it would bring together two of Italy’s most famous fashion houses, combining Versace’s daring style with Prada’s more refined and minimalist aesthetic.
What’s Next for Versace?
Vitale’s appointment signals a potential shift in design direction for Versace. Having worked at Miu Miu since 2010, he brings a background rooted in understated luxury—quite a contrast to Versace’s signature boldness. Fashion retailer Federico Giglio pointed out the challenge of blending these two distinct styles. “The Miu Miu customer likes more detail, a classy look while remaining playful, whereas the Versace woman has a brasher and sexy style,” he said. “A good designer, however, knows how to identify with the DNA of the company and add his personal touch.”
The broader luxury fashion industry is currently undergoing a wave of leadership changes amid a slowdown in demand from key markets such as China and a more cautious approach from inflation-weary consumers. Earlier this year, Gucci also saw a major shake-up when its creative director, Sabato De Sarno, exited after less than two years.
Financial Performance and Future Outlook
Versace has faced financial headwinds in recent years. The brand reported a 6.6% drop in revenue, bringing in $1
R19.10 billion (R18.85 billion) for the fiscal year ending March 2024. Projections suggest sales may decline further to $810
R15,021.91 million (R14.8 billion) in 2025 before rebounding in 2027.
Versace, originally founded by Gianni Versace in 1978 in Milan, was acquired by US fashion giant Michael Kors—now known as Capri Holdings—for $1
R18.55.8 billion (R35.73 billion) in 2018. As part of that deal, the Versace family received $150
R2,781.83 million (R2.98 billion) in Capri shares.
With Donatella stepping aside and a potential Prada acquisition on the horizon, the coming months could mark the beginning of a new era for Versace—one that could redefine its place in the luxury fashion world.
