09:23 AM EDT, 04/10/2025 (MT Newswires) -- (Updates with additional details and stock movement in last paragraph.)

Capri (CPRI) said Thursday that it has agreed to sell Versace to Prada for approximately $1.38 billion in cash.

The luxury fashion company said the sale will allow it to make "accelerated strategic investments" in its Michael Kors brand, and that the proceeds will also be used to support its capital allocation priorities, including business investments, debt reduction, and share buybacks.

The deal is slated to close in H2, Capri said.

Shares of Capri were 2.6% higher in recent premarket activity.