MILAN (Reuters) - Italian luxury group Prada has been given access, ahead of any other potential suitors, to the financial data of smaller rival Versace which owner Capri Holdings ( CPRI ) has put up for sale, a source close to the matter said on Thursday.

Prada has four weeks to conduct its assessment, the source said, as it weighs an acquisition that would mark a significant shift in strategy. No decision on whether to actually pursue the deal has yet been taken at this stage, the source added.

Capri Holdingss is working with Barclays ( JJCTF ) to explore a sale of its Versace and Jimmy Choo brands, sources told Reuters this year.

Prada and Barclays ( JJCTF ) declined to comment. Capri Holdings ( CPRI ) was not immediately available for a comment. 

Prada last completed acquisitions of other brands in the late 1990s and has been focusing on internal growth since then, defying expectations it could aspire to create a larger Italian fashion hub. 

The acquisition of Versace would allow Prada to target a different customer group, with tastes far from Prada's trademark minimalism.

But the Hong-Kong listed group would also have to deal with a challenging turnaround of the Medusa-logo brand, industry sources said.

Versace reported a 15% decline in revenues in the third quarter ending on December 28 and the operating loss increased to $21 million in the period, from $14 million a year earlier. 

Capri Holdings ( CPRI ) expects Versace's revenues to drop to $810 million in the 2025 fiscal year and the operating margin to break even in the following fiscal year, according to long term financial targets published on Wednesday. 

The brand's performance and the sector's bleak outlook could make it hard to set a price, complicating negotiations, according to industry sources, who said a turnaround would require investment. 

Capri Holdings ( CPRI ), formerly known as Michael Kors, bought Italian luxury brand Versace in 2018, for 1.83 billion euros including debt.

The four week exclusivity deal was first reported on Thursday by Italian daily Il Sole 24.

(This story has been refiled to change the day to Thursday, not Wednesday, in paragraph 1)