Dive Brief:
- Donatella Versace is stepping back from her role of chief creative officer of Versace to become chief brand ambassador, according to a press release Thursday. The move is effective April 1.
- Dario Vitale will succeed Donatella Versace as chief creative officer. Vitale joins the Capri Holdings-owned house after working at Miu Miu as design and image director. He’s been with the Prada Group-owned brand since 2010.
- The move is part of a succession plan for Versace, said Capri Holdings CEO John Idol.
Dive Insight:
Donatella Versace has maintained creative direction for the brand since 1997, following the death of her brother and the brand’s founder Gianni Versace. Her new role will focus on the brand’s philanthropic and charitable endeavours. The change marks the first time the Versace brand’s creative leadership won’t be helmed by the Versace family.
“It has been the greatest honor of my life to carry on my brother Gianni’s legacy,” Donatella Versace said in the release. “He was the true genius, but I hope I have some of his spirit and tenacity. In my new role as Chief Brand Ambassador, I will remain Versace’s most passionate supporter. Versace is in my DNA and always in my heart.”
Capri bought Versace in 2018.
Capri has reportedly been eyeing selling off Versace. Rumors have pointed to Prada as a potential buyer, but Prada CFO and Executive Director Andrea Bonini declined to comment on the rumors in its earnings call last week.
Vitale’s hire makes it seem likely that a sale may be on the horizon, said David Swartz, senior equity analyst for Morningstar Research Services.
“Attracting Vitale as the chief creative officer could make Versace more attractive to Prada and, potentially, increase the selling price,” Swartz said. “I understand that he was rumored to be going to Gucci, so it seems like a positive move for Versace to get him.”
Versace and its sister brands in the Capri Holdings portfolio have been struggling in recent quarters, with their prospects dimmed by the termination of a proposed merger with rival fashion conglomerate Tapestry last year.
In Capri’s latest earnings report, Versace’s revenue fell 15% to $193 million. Swartz added that it’s not surprising a creative change was made since the brand has lost relevance and has begun falling behind similar European luxury brands.
“My view is that Versace was going to be sold whether Donatella Versace remained as the lead designer,” Swartz said. “Capri has been unable to fix Versace and needs to focus on Michael Kors, which generates practically all its operating income.”
