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Versace announced Dario Vitale, the former design and image director at Miu Miu, as its new Chief Creative Officer, succeeding Donatella Versace who transitions to the role of Chief Brand Ambassador.
Bernstein analysts suggest that this appointment could facilitate a potential acquisition of Versace by Prada (OTC:PRDSY), reducing the likelihood of a cultural clash between Donatella Versace and Miuccia Prada.
According to the analysts, the move mirrors a similar strategy seen in the luxury fashion industry, drawing a parallel to Kering (EPA:PRTP)’s acquisition of a stake in Valentino. Kering secured 30% of Valentino from Mayhoola in July 2023, with an option to fully acquire the company by 2028.
Alessandro Michele, formerly of Gucci, took over as Creative Director of Valentino in March 2024, which was seen as a strategic alignment prior to the acquisition.
The analysts further noted that the arrival of Vitale at Versace might make Prada more inclined to repurchase talent that has previously worked within its ranks, enhancing the desirability of the deal.
With the decision deadline for the acquisition looming in just two weeks, Bernstein views the scenario as increasingly probable and a potential short to mid-term risk to Prada’s stock performance.
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