The Prada Group announced double-digit growth for the fourth consecutive year on Tuesday, defying a broader downturn in the luxury sector and fueling speculation about a potential acquisition of Versace. The Italian fashion giant, which owns Prada, Miu Miu, and Church’s footwear, saw revenues climb 17% to 5.4 billion Euros (USD 5.7 billion) in 2024, up from 4.7 billion Euros in 2023. Retail sales also surged 18% to 4.6 billion Euros.

Prada, the group’s flagship brand, posted a steady 4% increase in sales, while Miu Miu, its younger, trendier counterpart, nearly doubled its revenue. This growth stands in stark contrast to the luxury market’s overall contraction in 2024—the first since the Great Recession. Chairman Patrizio Bertelli credited the success to the brands’ focus on innovation, craftsmanship, and cultural relevance.

Rumors of a Versace acquisition have intensified as Prada considers expanding its portfolio. Versace, owned by U.S.-based Capri Holdings since 2018, complements Prada’s existing brands. Italian media suggest Capri could sell Versace for 1.5 billion Euros (USD 1.6 billion), a steep discount from the USD 2 billion it paid six years ago. Capri has struggled to revitalize the iconic Italian label, founded in 1978 and led creatively by Donatella Versace for over two decades.

Speaking after Prada’s Fall-Winter 2025-26 show last week, Miuccia Prada hinted at the possibility, saying, “I think it’s on everybody’s table.” CEO Andrea Guerra, addressing analysts, emphasized organic growth but didn’t rule out acquisitions, calling it “arrogant” to ignore opportunities. He avoided naming Versace directly.

Analysts see potential in the deal. Bernstein’s Luca Solca noted that Prada could snag Versace “on the cheap,” given its global recognition. However, he cautioned that Prada’s poor history with mergers and acquisitions, combined with the significant investment needed to revive Versace, poses risks. “It requires money, expertise, and short-term sacrifices,” Solca warned.

For now, Prada’s robust 2024 performance reinforces its resilience, even as it weighs a bold move to reshape its place in luxury fashion.