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Prada strikes $1.38 billion deal for Versace after last-minute dramatics

The luxury merger closed at zero hour as tariff uncertainty nearly derailed the deal.

4/10/25 9:19AM

Prada has sealed a deal to buy rival luxury fashion house Versace for $1.38 billion — a $200 million markdown as both brands brace for rising US trade costs and cooling luxury demand.

The deal briefly hung in the balance Wednesday, according to reports that Prada’s founding family hadn’t yet signed off and that talks were at risk of collapsing because of market volatility, but the green light came early Thursday, after a rollback of President Trump’s tariff plan stabilized markets some. Versace, founded over 40 years ago, was originally acquired by Michael Kors parent Capri Holdings in 2018 for $2.1 billion.

Luxury giants are aiming to team up as shoppers cut back on $1,500 handbags. Capri’s $8.5 billion deal with Coach-owner Tapestry collapsed last year after the FTC warned it would stomp out competition in the affordable luxury space. Meanwhile, the ongoing tariff drama looms large, threatening to push up the cost of raw materials from Asia and pile on even more pressure.

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eBay stock slumps on gloomy Q4 outlook despite solid Q3 earnings

Shares of eBay fell as much as 10.5% in premarket trading on Thursday morning after the company gave a lower-than-expected profit forecast for the important holiday shopping season.

The e-commerce giant reported solid numbers for the third quarter on Wednesday, with revenue up 9% as reported to $2.8 billion and gross merchandise volume rising 10% to $20.1 billion, topping the average analyst forecast of $19.4 billion, per Bloomberg.

However, concerns about the future somewhat overshadowed these results.

eBay outlined its profit outlook for the period ending in December to $1.31 to $1.36 a share, with revenue at $2.83 billion to $2.89 billion. According to Bloomberg-compiled data, this broadly matches Wall Street’s estimates for the top line, but misses on the bottom line, with analysts forecasting EPS to come in at $1.39 — suggesting the company expects some further margin pressure.

The company has been facing macroeconomic challenges since the US ended the de minimis tariff exemption in late August, with the online marketplace reliant on shipments. One small silver lining? CFO Peggy Alford highlighted a “less durable trend” on a post-earnings call: that as commodity prices for precious metals boomed, demand for bullion and collectible coins on eBay spiked.