Italy: Luxury Enters a New Strategic Era

Valentino, Armani, and Prada, the three major Italian luxury houses, are undergoing a major restructuring. They are reshaping the future of the sector by embarking on a new phase of consolidation and strategic adaptation.

At Valentino, the change in leadership is part of an urgent turnaround: Riccardo Bellini was appointed CEO this summer and Davide Tosi recently took up the position of Chief Merchandising Officer (CMO), in a context where the fashion house, despite its renown, saw its sales stagnate at around €1.3 billion in 2024. Kering and investment company Mayhoola agreed a few weeks ago to bail out the brand with €100 million to secure its financial situation.

At Armani, the passing of “re Giorgio” has brought an ambitious succession plan to the fore. The group, which recorded approximately €2.3 billion in revenue in 2024 but saw its operating profits decline, has just formed a new board of directors composed of recognized experts to steer the transition with - according to the creator's will - a gradual sale of part of the capital in order to ensure the longevity and financial independence of the iconic fashion house. This is a rebalancing aimed at protecting the licenses (beauty, eyewear), which represent a significant part of the group's value.

Prada, for its part, is going on the offensive. The group, which until now consisted of Prada and Miu Miu, confirmed in April 2025 the acquisition of Versace for approximately €1.25 billion, a move intended to generate strong industrial synergies. At the same time, as confirmed by Andrea Guerra and Lorenzo Bertelli in recent days, the company has ambitions to double its size in the medium term, a target set by management at €8 billion in revenue. However, no further acquisitions are planned for the time being, Andrea Guerra said on the sidelines of an event celebrating the 25th anniversary of the group's academy.

All these moves reflect three complementary strategies: Prada is showing a desire to consolidate with Versace to form a powerful joint entity capable of coping with increased competition in the luxury market and a more unstable economic environment; Armani is showing its intention to “professionalize” its governance with Giuseppe Marsocci as CEO and Marco Bizzarri (formerly of Gucci) as consultant; and Valentino is aiming for a strategic refocusing to regain profitability, a delicate objective as cost cutting could impact the brand's identity.

Financially, the challenges of the three strategies converge: controlling debt, streamlining distribution networks, and investing in “Made in Italy” production and the supply chain, while preserving creativity.
Recent acquisitions and restructuring show that for all three groups, value and financial resilience are becoming decisive criteria for coping with an increasingly volatile luxury market.