Donatella Versace Steps Down as Design Chief as Sale Talk Swirls

Donatella Versace attends the Vanity Fair Oscars party after the 97th Academy Awards, in Beverly Hills, California, US, March 2, 2025. REUTERS/Danny Moloshok/File Photo
Donatella Versace attends the Vanity Fair Oscars party after the 97th Academy Awards, in Beverly Hills, California, US, March 2, 2025. REUTERS/Danny Moloshok/File Photo
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Donatella Versace Steps Down as Design Chief as Sale Talk Swirls

Donatella Versace attends the Vanity Fair Oscars party after the 97th Academy Awards, in Beverly Hills, California, US, March 2, 2025. REUTERS/Danny Moloshok/File Photo
Donatella Versace attends the Vanity Fair Oscars party after the 97th Academy Awards, in Beverly Hills, California, US, March 2, 2025. REUTERS/Danny Moloshok/File Photo

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, Reuters reported.

"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.

DESIGN CHANGES

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 US 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.



Nike Trips as Forecast of Another Sales Decline Dims Quick Turnaround Hopes 

Nike shoes are seen displayed at a sporting goods store in New York City, New York, US, May 14, 2019. (Reuters)
Nike shoes are seen displayed at a sporting goods store in New York City, New York, US, May 14, 2019. (Reuters)
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Nike Trips as Forecast of Another Sales Decline Dims Quick Turnaround Hopes 

Nike shoes are seen displayed at a sporting goods store in New York City, New York, US, May 14, 2019. (Reuters)
Nike shoes are seen displayed at a sporting goods store in New York City, New York, US, May 14, 2019. (Reuters)

Nike shares slipped nearly 6% premarket on Friday after the sportswear giant warned of another quarter of sales decline, leaving some investors worried about the pace of a crucial turnaround under new CEO Elliott Hill.

The company on Thursday forecast a steeper-than-expected drop in fourth-quarter revenue and also reported a 17% slump in China quarterly sales amid weaker discretionary spending in the country.

Hill - who took on the role in October to help the sportswear maker regain lost market share - has laid out what he called a "Win Now" strategy, which includes boosting on-the-ground presence in five key cities including Shanghai and Beijing.

"It is too early to be confident in the turnaround," Sheraz Mian, director of research at Zacks Investment Research, said.

The new management will take time to rebuild relations with other retailers that were weakened by its focus on selling directly via its stores and website and develop a more compelling line of products, he said.

Nike shares are down about 11% since Hill's CEO announcement in September, giving up all the gains following his appointment.

To be sure, Hill has fast-tracked certain sneaker launches such as Pegasus premium and Vomero 18 that helped lift sales in the reported third quarter. Still, Nike is working to move past the previous management's strategy missteps that led to a lack of innovation for its product lines.

Nike's Chief Financial Officer Matthew Friend said the company would take "several quarters" to clear out its dated stock, which would involve margin-hitting discounts.

"Nike is emerging from quite a deep hole from prior management in terms of excess inventory, lack of innovation and brand equity, which we expect will take multiple seasons to correct," Barclays analyst Adrienne Yih said.

Analysts at Barclays also projected that the earliest they foresee a turnaround is in the second half of Nike's fiscal year ending May 2026.

The company's forward price-to-earnings ratio for the next 12 months, a benchmark for valuing stocks, was 30.08, compared with 17.33 for Deckers and 25.91 for Adidas.

"We continue to like the recovery story but don't expect to see much short-term progress," Bernstein analysts said.