Part of Prada Group’s strength throughout the luxury slowdown has been its ability to maintain fashion appeal, particularly at Miu Miu, and resonating with entry-level customers without sacrificing its luxury positioning.
The main priority is for Versace to gain relevance as a brand, says Bernstein luxury goods analyst Luca Solca. “This is primarily the task of Dario Vitale and his team,” he says. That’s underway: Vitale’s Spring/Summer 2026 collection referenced ’80s Versace, with wearable high-rise trousers, blazers and knits in bright colours. It was an effective — albeit divisive — first step in modernising Versace and outlining who its customer is today. Vogue Runway and Vogue Business global director Nicole Phelps wrote in her review: “The clothes seemed to be skewed squarely at Vitale’s own millennial brethren, with their taste for vintage and penchant for layering. Plus, anybody else older or younger and firm of body — that part is important.”
As Vitale shakes up the design, Versace will need to follow through with strong merchandising and marketing to accompany it. “For a rather fashion-driven brand like Versace, the focus will be on bringing the collections gradually to store, while managing the existing ranges and supporting these collections with marketing spending, which may need to be increased,” says Sokolova. She points to opportunities to develop more consistent core offerings and potentially Versace’s leather goods — a competitive but critical luxury category.
Beyond that, experts point out a need to clean up Versace’s distribution — “refocusing on full-price retail, reducing wholesale and off-price”, says Solca. He also notes a “need to invest [in], update and upgrade the Versace retail network”. Saunders points to untapped international potential in key regions like the Middle East and Asia — “although with Asia, an assessment needs to be made as to how well the brand fits in with consumer tastes in the region.” There’s also white space in the US, especially in the accessories category, adds Saunders.
Long term, Prada’s challenge is to refine Versace’s position in the luxury market. “The bottom line here is that Versace is a big name, but it is still a relatively small business that should be bigger,” says Saunders. “Prada needs to work to ensure Versace reaches its potential.”
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