Luxury M&A in 2025: Prada’s Versace buyout and what’s next for the sector

As 2025 draws to a close, the luxury sector has seen a notable uptick in merger and acquisition activity, driven by slower growth in key markets, selective opportunities for undervalued brands, and strategic efforts to expand global portfolios. Leading the pack is Prada’s acquisition of Versace, a headline-grabbing move that highlights both the logic and challenges of consolidation in high-end fashion.