The April 10 deadline for Prada’s Versace acquisition talks is fast approaching, but the rumor that Prada might consider acquiring Jimmy Choo as part of its Versace acquisition is something that many are looking forward to.
Prada Group’s talks to acquire Versace could be concluded in the coming weeks. According to Italian financial news site Il Sole 24 Ore, reports emerged in early March that Prada had reached a preliminary agreement to buy Versace for €1.5 billion after its finance team assessed there was no significant risk to the Versace brand. And just two weeks ago, Prada’s entire executive team, including Miuccia Prada, flew to New York to meet face-to-face with Capri Holdings, indicating how serious the talks were.
According to Il Sole 24 Ore, Jimmy Choo could also be part of the deal, as Capri Holdings is looking to sell the iconic shoe brand. This could simply mean that they are trying to combine the two brands to speed up the sale process, which could push the total deal value beyond the €1.5 billion initially discussed.
Acquiring Jimmy Choo alongside Versace would be an interesting move and a clear sign that Prada is taking advantage of its strong revenue growth in recent years to expand its empire. Prada has enlisted financial advisors from Goldman Sachs and Citi to negotiate the deal on its behalf, suggesting that the initiative to acquire Versace is significant. Of course, negotiations of this magnitude can fall apart at the last minute for a variety of reasons, but with a decision expected by April 10, the luxury industry won’t have to wait long to find out.
Reasons why the Jimmy Choo deal is likely to happen
Currently, there is no official information from Prada, Versace or Capri Holdings (Jimmy Choo’s parent company) about Prada’s plans to acquire Jimmy Choo along with Versace. However, based on confidential sources from the financial and international media, this is likely to happen. According to reports, when Prada is negotiating to acquire Versace for about 1.5 billion euros, Jimmy Choo could be included in the deal as part of the purchase package, because Capri Holdings (owner of Jimmy Choo) has long wanted to sell the brand to focus on Michael Kors and Versace. Jimmy Choo was acquired by Capri Holdings in November 2017, with the acquisition cost of 896 million euros.
Prada may be interested in acquiring Jimmy Choo, experts say, because it wants to expand its luxury brand portfolio: Jimmy Choo adds to its footwear and accessories division, while Versace focuses on clothing. Furthermore, Prada is now well-positioned to capitalize on its financial strength, as Prada has recently seen strong revenue growth, especially in Asia – which allows it to afford major acquisitions. This makes Prada, in Capri Holdings’ eyes, one of the few customers with the financial capacity to acquire Jimmy Choo.
Jimmy Choo’s revenue assessment is also something Prada will consider. According to Grips Intelligence’s financial report, in the first two months of 2025, the British luxury shoe brand had online revenue of $3,785,802, a conversion rate of 0.50-1.00%, and an average order value of $525-550. Jimmy Choo’s average revenue in the footwear industry is $74,787.
Notably, the brand’s three largest consumer markets are the Middle East – Africa – Europe, the Americas and Asia. In fiscal year 2024, Jimmy Choo’s EMEA (Middle East, Africa, Europe) region generated around $266 million in revenue (according to Statista). Jimmy Choo’s global distribution and spread is something Prada will consider, as it ties in with the group’s strong distribution system.
However, according to financial experts, there are only two main reasons why Prada might skip Jimmy Choo: The high value of the deal increases financial pressure. If Jimmy Choo is added, the total value of this acquisition could exceed 2 billion euros, putting pressure on Prada’s cash flow. There will also be challenges in managing multiple brands. Merging two major brands at the same time can be complicated in terms of operations. Versace is inherently a heritage brand, Jimmy Choo – with 29 years of development, is also a British luxury shoe brand. Having to establish a development strategy for both luxury brands at the same time will give Prada’s leaders a headache.
Prada’s acquisition of Versace is 90% likely to happen. But whether Jimmy Choo will be included in this remarkable acquisition or not, the answer will be soon available in April.