Donatella Versace steps down as design chief as sale talk swirls
- 6 hours ago
Donatella Versace, one of the fashion world's best-known designers, is to step down as chief creative officer of the Versace brand after almost three decades in the role at the company founded by her late brother Gianni.
The move, announced by owner Capri Holdings on Thursday, comes amid reports that Prada is moving closer to a deal to buy Versace from Capri after agreeing to a price of nearly 1.5 billion euros ($1.6 billion).
Dario Vitale, former Design and Image Director at Miu Miu, a smaller brand within the Prada group, will take Donatella's role as Chief Creative Officer effective on April 1.
Donatella, 69, will take on the role of chief brand ambassador at Versace.
"It has been the greatest honor of my life to carry on my brother Gianni's legacy. He was the true genius, but I hope I have some of his spirit and tenacity," said Donatella, who helped to keep the business going after Gianni was killed in Miami in 1997.
"I am thrilled that Dario Vitale will be joining us, and excited to see Versace through new eyes," she added.
The timing of the move was intriguing with Prada seen as on the cusp of a deal that would unite two of the biggest names in Italian fashion.
"Versace has been struggling, so it's not surprising that a change is being made," said David Swartz, an analyst with Morningstar.
"The brand has lost relevance and has fallen behind similar European luxury brands. 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," he added.
The announcement is the latest in a series of high-profile designer changes in the industry as it seeks to rebuild its business amid slowing luxury demand in China and inflation-weary shoppers.
Earlier this year Gucci design chief Sabato De Sarno left the Italian label after less than two years in the job.
Donatella Versace gave the brand a bold and provocative aesthetic. Her connections with many big-name celebrities helped to reinforce the brand's appeal.
Miu Miu, a label launched by Miuccia Prada as an offshoot of the main business in 1993, has a more sober look and has been growing rapidly.
Versace reported a 6.6% drop in revenues to $1.03 billion for the fiscal year ending March 2024. Sales are seen to fall further to $810 million in 2025, before returning to growth in 2027.
Versace, founded by Gianni Versace in Milan in 1978, was bought by U.S. group Michael Kors, now known as Capri Holdings, for 1.8 billion euros ($1.87 billion) in 2018. The Versace family received 150 million euros of the sale price in Capri shares.
Reuters
