Finance
Prada plans to cut outlets and lower brands at versace
Published by Global Banking & Finance Review®
Posted on March 5, 2026
2 min readLast updated: March 5, 2026
Quick Summary
Prada intends to boost full‑price sales at Versace by eliminating sub‑brands and outlet channels, while preserving haute couture via Atelier Versace. Margin drag from Versace is expected to ease from 2027.
Prada to Cut Versace Outlets and Sub-Brands, Eyes Financial Turnaround
By Elisa Anzolin
Prada's Strategic Moves for Versace and Financial Outlook
Versace's New Creative Direction
MILAN, March 5 (Reuters) - Prada plans to increase full-price sales and cut secondary lines at its recently acquired Versace brand, whose first collection under new creative director Pieter Mulier in expected only in 2027.
Mulier, who joins from Richemont-owned Alaia, will take up the role in July and present his first show in early 2027.
Shutting Down Sub-Brands
In the meantime, the group will shut the Versace Jeans line and all other sub‑brands in ready‑to‑wear, Prada's Finance Chief Andrea Bonini told analysts.
Focus on Atelier Versace
Prada will work instead to relaunch the top-tier Atelier Versace line with a focus on haute couture and special projects.
Full-Price Sales Strategy
Reducing Discount Channels
FULL-PRICE SALES
Prada will gradually cut channels through which Versace sells its products at discounted prices, such as factory outlets, as well as curb discount campaigns in general.
Outlet Exposure Compared to Competitors
Versace currently has one of the sector's highest exposures to outlet retail, with a recent Morgan Stanley study estimating that more than 30% of its sales come from outlets.
Its 62 brick-and-mortar outlet stores compare with 52 at Ferragamo and 54 at Burberry's, Morgan Stanley said.
Versace Impact on Prada's Financial Results
Short-Term Financial Challenges
Prada's acquisition of Versace weighed on profit margins in 2025 and will continue to do so at the operating level this year, with an improvement expected from 2027.
Versace posted an operating loss last year and Prada's goal is to limit this year's expected operating loss to a "two-digit figure".
Expected Savings and Revenue Outlook
While Versace will require additional investment, the group also expects to generate savings from the integration of its former rival.
Versace reported revenues of 684 million euros in 2025, and Prada expects sales to decline by a mid‑single‑digit rate at constant exchange rates in 2026.
(Reporting by Elisa Anzolin; Editing by Valentina Za)
Key Takeaways
- •Versace’s sub‑brands like Versace Jeans will be discontinued, directing focus to Atelier Versace haute couture and special projects
- •Prada will cut factory outlets and discount campaigns to enhance full‑price performance — over 30 % of Versace sales currently stem from outlets
- •The acquisition dragged on Prada’s margins in 2025–2026; improvement is projected starting in 2027
Frequently Asked Questions about Prada plans to cut outlets and lower brands at Versace
1Why is Prada cutting Versace outlet stores?
Prada aims to boost Versace's full-price sales and brand positioning by reducing its exposure to outlets and discount channels.
2Which Versace lines are being discontinued?
Versace Jeans and all ready-to-wear sub-brands will be shut down, with focus shifting to Atelier Versace.
3When will Pieter Mulier debut his first Versace collection?
Pieter Mulier will join in July and unveil his first collection for Versace in early 2027.
4How has Versace's financial performance affected Prada?
Versace has posted operating losses, impacting Prada's margins, with improvement expected from 2027 onward.
5What is Prada's goal for Versace's financial turnaround?
Prada aims to limit Versace's 2026 operating loss to a two-digit figure and expects revenue growth after brand integration and relaunch.