1316 GMT - Prada's acquisition of Versace makes sense even though the deal could be an initial drag on the group's profitability, given the investments needed to reboot the brand, Morningstar analyst Jelena Sokolova says. The Italian luxury fashion group agreed to acquire the Versace brand from U.S. group Capri Holdings for $1.4 billion. Prada's profitability and cash position have been strengthened in recent years, helped by strong brand momentum, the analyst says. Versace has been struggling with revenue declines and reported operating losses for the past three quarters. "Prada has definitely track record and expertise in running luxury brands that current owner Capri probably lacks," the analyst says. (andrea.figueras@wsj.com)
(END) Dow Jones Newswires
April 10, 2025 09:16 ET (13:16 GMT)
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