Capri shares reverse course to fall after Prada's $1.4 billion deal for Versace

Shares of Michael Kors-parent Capri Holdings CPRI.N reverse premarket gains to fall as much as 12.9% to $14.25 in afternoon trading

Prada 1913.F says it will buy Versace from Capri in a deal valuing the iconic brand at $1.38 billion

*The deal is at a discount to roughly $2.15 billion including debt that U.S.-based Capri paid for Versace in 2018

Capri’s sale of Versace at a steep loss, combined with recent financial struggles and leadership uncertainty, has shaken investor confidence and dragged the stock down despite initial optimism - Angeli Gianchandani, adjunct instructor at New York University's School of Professional Studies

Versace will become a subsidiary upon closing of the deal, the Italian fashion house says

Transaction is expected to close in the second half of calendar year 2025

Including session moves, CPRI shares down over 29% so far this year