How we source: figures on this page come from the company’s own filings (SEC 10-K, 10-Q and earnings releases, or its annual report), with the period stated next to each number. Last refreshed October 2026. Our methodology.
In short
Versace makes money by selling its own clothing, accessories and shoes in its boutiques, outlets and websites, by selling wholesale to department stores, and by collecting royalties from licensees such as Luxottica and EuroItalia. In its last full year under Capri Holdings, to March 2025, revenue fell 20% to $821M and it made an operating loss of $54M. Prada bought it on 2 December 2025 for $1.375bn.
Versace sells ready-to-wear, accessories and footwear through its own boutiques, outlets and e-commerce sites, and wholesale to department stores, specialty stores and distribution partners. Licensees make other lines, including Versace Jeans Couture (Swinger), eyewear (Luxottica), fragrances (EuroItalia) and watches (Vertime), and pay royalties based on their sales.
Capri revenue by fiscal year, FY2021 to FY2025, from the company's filings. Chart: The Business Engineer.
In Capri’s fiscal 2025, to 29 March 2025, Versace revenue was $821M, about 18% of Capri’s total. EMEA brought in $344M, the Americas $260M and Asia $217M.
Versace ran 228 stores at 29 March 2025: 166 full-price stores, including concessions, and 62 outlets. Asia had 131 of them.
How Versace compares
Against its own history, Versace revenue peaked at $1,106M in Capri’s fiscal 2023, then fell to $1,030M in fiscal 2024 and $821M in fiscal 2025.
Within Capri, Versace had the highest gross margin in fiscal 2025, 70.0%, against 66.9% at Jimmy Choo and 61.2% at Michael Kors. But its selling and administrative costs were about 70% of revenue, so it made an operating loss of $54M (-6.6%), against a $341M profit at Michael Kors.
Under Prada, Versace’s 2025 calendar-year revenue was โฌ684.4M. In the first half of 2026 it contributed โฌ305M.
What changed in FY2025
Capri says Versace revenue fell 20.3% in fiscal 2025 because of softer global demand and strategic initiatives that did not perform as expected. Capri recorded $656M of impairment charges on Versace; Capri as a whole made a net loss of $1,179M.
Capri revenue by line, prior year against FY2025 (Capri fiscal year), as reported. Chart: The Business Engineer.
Capri agreed to sell Versace to Prada on 10 April 2025 and completed the sale on 2 December 2025. The agreed price was $1.375bn in cash; Capri received gross proceeds of $1.395bn on an estimated closing statement and recorded a preliminary gain of $45M. Between 30 March and 2 December 2025, Versace’s revenue under Capri was $592M.
Prada consolidated Versace from 2 December 2025, adding 220 stores and โฌ65.1M of revenue in December. It appointed Lorenzo Bertelli executive chairman and Pieter Mulier chief creative officer.
What to watch
Prada expects some decline in Versace’s revenue in 2026 and operating losses similar to 2025, as it repositions the brand, reduces off-price sales and optimises the store network.
Versace weighs on Prada’s margins. Prada’s adjusted EBIT margin was 17.4% in the first half of 2026, against 22.6% a year earlier; Prada says organic profitability was steady.
Prada expects full separation from Capri’s systems in the second half of 2026. Prada says Pieter Mulier’s first collection will be introduced as part of its plans for 2027 and beyond.
Frequently asked questions
Who owns Versace?
Prada S.p.A. It completed the purchase from Capri Holdings on 2 December 2025, for an agreed price of $1.375bn in cash, subject to adjustments.
How does Versace make money?
By selling clothing, accessories and shoes in its own stores and online, by selling wholesale to department and specialty stores, and through royalties from licensees for products such as eyewear, fragrances, watches and Versace Jeans Couture.
Is Versace profitable?
No. In Capri’s fiscal 2025 it made an operating loss of $54M on $821M of revenue. Prada says Versace made operating losses in 2025 and expects losses of similar size in 2026.
How big is Versace?
Revenue was $821M in Capri’s fiscal year to March 2025 and โฌ684.4M in calendar 2025, according to Prada. In the first half of 2026 it was โฌ305M. It ran 228 stores at March 2025.
Versace’s business model offers timeless elegance and luxury through exceptional craftsmanship and unique designs. With in-house production and a global retail network, Versace focuses on delivering outstanding customer experiences. Their high-end luxury pricing strategy drives revenue through product sales, boutique sales, and e-commerce channels. Targeting affluent consumers, fashion enthusiasts, and the global elite, Versace leverages its brand heritage, artistic talent, and strategic partnerships while managing materials, marketing, and retail operations costs.
Value Proposition
Luxury Fashion Brand: Versace’s value proposition revolves around its reputation as a luxury fashion brand synonymous with opulence, glamour, and Italian craftsmanship. With a rich heritage dating back to its founding in 1978, Versace offers haute couture, ready-to-wear apparel, accessories, and fragrances that exude sophistication and allure, appealing to discerning consumers seeking exclusivity and prestige.
Iconic Designs: Versace’s value proposition is bolstered by its iconic designs characterized by bold prints, vibrant colors, and daring silhouettes. From the Medusa logo to the Baroque-inspired motifs and the use of luxurious materials such as silk, leather, and gold embellishments, Versace’s distinctive aesthetic sets it apart in the world of high fashion, attracting fashion-forward individuals who crave statement pieces and attention-grabbing style.
Cultural Influence: Versace’s value proposition extends beyond fashion to encompass cultural influence and relevance. With a strong presence in popular culture, music, and entertainment, Versace’s brand identity resonates with a diverse audience worldwide, including celebrities, influencers, and trendsetters who embrace the brand’s bold and audacious spirit, making Versace a symbol of contemporary luxury and lifestyle.
Brand Heritage: Versace’s value proposition is anchored in its rich brand heritage and legacy of innovation and creativity. Founded by Gianni Versace and now led by his sister, Donatella Versace, the brand continues to uphold its founder’s vision of pushing boundaries and challenging conventions in the world of fashion, inspiring admiration and loyalty among aficionados of high-end luxury.
Revenue Model
Retail Sales: Versace generates revenue primarily through retail sales of its luxury fashion and lifestyle products, including apparel, accessories, footwear, and fragrances. The brand operates a global network of flagship stores, boutiques, and department store concessions where customers can purchase Versace merchandise directly from the brand, contributing to its revenue stream.
E-commerce: Versace’s e-commerce platform serves as a significant revenue driver, allowing customers to shop online for Versace products from anywhere in the world. With a user-friendly interface, secure transactions, and personalized shopping features, the Versace website offers a seamless and convenient shopping experience, capturing sales directly through online transactions and reaching a global audience of digital-savvy consumers.
Wholesale Distribution: Versace distributes its products through wholesale channels, including partnerships with department stores, luxury retailers, and multi-brand boutiques worldwide. By selling wholesale to these partners, Versace extends its distribution reach and gains exposure to a diverse customer base, driving sales and revenue growth through wholesale orders and replenishments.
Licensing Agreements: Versace earns revenue through licensing agreements with third-party manufacturers and distributors who produce and sell Versace-branded products under license. These licensed products may include eyewear, watches, fragrances, home furnishings, and other lifestyle items, allowing Versace to leverage its brand equity and expand its product offering while generating royalties from licensed merchandise sales.
Brand Collaborations: Versace collaborates with other brands, designers, and artists to create co-branded collections, limited-edition products, and exclusive collaborations. These brand partnerships generate revenue through joint marketing efforts, product sales, and shared licensing agreements, leveraging the unique strengths and aesthetics of both parties to attract consumers and drive sales.
Operational Model:
In-House Production: Maintaining control over the production process by having in-house manufacturing facilities.
Global Retail Network: Operating a global network of Versace boutiques for distribution and customer engagement.
Focus on Customer Experience: Providing personalized and exceptional customer experiences through attentive service and brand immersion.
Pricing Model:
High-End Luxury Pricing: Setting premium prices to align with the brand’s exclusivity and high-end positioning.
Revenue Model:
Product Sales: Generating revenue through sales of luxury fashion and accessory products.
Boutique Sales: Driving revenue through direct sales in Versace boutiques worldwide.
E-commerce Sales: Expanding revenue streams through online sales channels.
Customer Segments:
Affluent Consumers: Targeting affluent individuals who appreciate luxury fashion and are willing to pay a premium for quality.
Fashion Enthusiasts: Appealing to fashion enthusiasts who value unique and distinctive designs.
Global Elite: Catering to the global elite, including celebrities, influencers, and high-profile individuals.
Key Activities:
Design and Product Development: Creating unique and innovative fashion designs and product offerings.
Manufacturing and Production: Ensuring the highest standards of craftsmanship and quality in manufacturing processes.
Brand Marketing and Promotion: Building brand awareness and promoting Versace’s products through strategic marketing initiatives.
Key Resources:
Brand Heritage and Reputation: Leveraging a rich brand heritage and reputation built over decades.
Designers and Artistic Talent: Attracting and retaining top designers and artistic talent to drive creative excellence.
Retail Network: Maintaining a global network of Versace boutiques for distribution and customer engagement.
Key Partnerships:
Suppliers and Manufacturers: Collaborating with suppliers and manufacturers to ensure the sourcing of high-quality materials and production capabilities.
Retail Partnerships: Forming partnerships with select retailers to expand distribution and reach.
Celebrity and Influencer Collaborations: Partnering with celebrities and influencers to enhance brand visibility and credibility.
Cost Structure:
Materials and Manufacturing Costs: Expenses associated with sourcing high-quality materials and maintaining in-house manufacturing capabilities.
Marketing and Advertising Costs: Investments in marketing campaigns, brand events, and advertising to promote the brand and its products.
Retail Operations Costs: Operating costs of Versace boutiques and retail channels.
Distribution Strategy:
Global Retail Network: Versace operates a global network of boutiques and stores in key fashion capitals and luxury shopping destinations around the world. This strategy ensures a physical presence in areas frequented by affluent customers and fashion enthusiasts.
Selective Distribution: Versace employs a selective distribution approach, carefully choosing the locations and partners for its boutiques and stores to maintain exclusivity and control over its brand image.
E-commerce Channels: In addition to physical boutiques, Versace has a strong online presence through its e-commerce channels. These digital platforms enable the brand to reach a global audience and provide customers with the convenience of shopping online.
Customized Experiences: Versace focuses on providing personalized and exceptional customer experiences in its boutiques. This includes attentive service, exclusive events, and immersive brand experiences to create a sense of luxury and exclusivity.
Marketing Strategy:
Brand Heritage: Versace leverages its rich brand heritage and reputation built over decades as a symbol of Italian luxury and craftsmanship. The brand’s history and legacy are integral to its marketingstrategy.
Artistic Collaborations: Versace collaborates with top designers and artistic talent to drive creative excellence and innovation in its fashion offerings. These collaborations are often highlighted in marketing campaigns to showcase unique designs.
Celebrity and Influencer Partnerships: The brand partners with celebrities and influencers, including high-profile individuals and fashion icons, to enhance brand visibility and credibility. These collaborations are featured in marketing and advertising efforts.
Strategic Events: Versace participates in industry events, fashion shows, and high-profile fashion weeks to showcase its collections and maintain a strong presence in the fashion world.
Digital Engagement: Versace maintains an active digital presence through its website and social media platforms. It shares content related to fashion trends, behind-the-scenes glimpses, and engages with its audience online.
Organizational Structure:
Creative Team: This team consists of designers, creative directors, and artistic talent responsible for conceptualizing and creating the brand’s fashion collections and accessories.
Retail Operations: Managing the global network of Versace boutiques and stores, including boutique managers, sales associates, and store support staff.
Marketing and Branding: This department handles marketing campaigns, advertising, public relations, and brand management. It includes marketing professionals, creative teams, and PR specialists.
E-commerce and Digital: Responsible for managing the brand’s online presence, e-commerce platforms, and digital marketing efforts to drive online sales and engagement.
Supply Chain and Production: Ensures the sourcing of high-quality materials, in-house manufacturing capabilities, and efficient supply chain operations to support production.
Partnerships and Collaborations: Manages strategic partnerships with suppliers, manufacturers, retailers, celebrities, and influencers to enhance brand visibility and product offerings.
Customer Experience: Focuses on delivering exceptional customer experiences in Versace boutiques, including customer service, events, and immersive interactions.
Capri Holdings’ revenue increased from $4.72 billion in 2018 to $5.24 billion in 2019.
The revenue continued to rise in 2020, reaching $5.55 billion.
In 2021, the revenue decreased to $4.06 billion, a significant drop from the previous year.
However, in 2022, the revenue rebounded, growing to $5.65 billion.
In 2018, the net income was $592 million.
In 2019, it slightly decreased to $543 million.
The net income took a significant hit in 2020, resulting in a loss of $223 million.
In 2021, the company still experienced a net loss, though smaller, of $62 million.
By 2022, the net income rebounded significantly to $822 million.
In 2020, the net income was a loss of $8 million.
The net income turned positive in 2021, reaching $21 million.
In 2022, Versace’s net income increased significantly to $185 million.
In 2020, the revenue was $555 million.
The revenue decreased in 2021 to $418 million.
However, in 2022, Jimmy Choo’s revenue increased significantly to $613 million.
In 2020, the company experienced an operating loss of $13 million.
The operating loss increased in 2021 to $55 million.
However, in 2022, Jimmy Choo’s operating performance improved, resulting in an operating income of $13 million.
Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur (for example, How to Digitize a Family Business in Europe) and HackerNoon. Find him on LinkedIn and Substack. See how we source.
Scroll to Top
Discover more from FourWeekMBA
Subscribe now to keep reading and get access to the full archive.
