Prada Group has reported its fourth consecutive year of double-digit growth, positioning itself as a potential buyer for Versace, which is currently owned by Capri Holdings. The strong financial results come as the luxury sector faces its first downturn since the 2008 financial crisis, making Prada’s performance stand out among its competitors.

Prada’s Earnings Defy Market Trends

On Tuesday, Prada announced a 17% increase in revenues, reaching €5.4 billion in 2024, up from €4.7 billion in 2023. The company’s retail sales grew by 18%, totaling €4.6 billion.

Breaking down the performance by brand:

• Prada, which drives the majority of earnings, saw a 4% increase in sales.
• Miu Miu, the group’s younger brand, nearly doubled its revenues, marking a significant boost in demand.

This success comes despite a sluggish global luxury market, which contracted in 2023 for the first time in over a decade. Prada Group Chairman Patrizio Bertelli credited the company’s resilience to its commitment to “product innovation, quality, craftsmanship, and a deep understanding of contemporary fashion trends.”

Versace Acquisition Talks Gain Momentum

With Prada’s robust financial standing, speculation is growing over its interest in acquiring Versace from Capri Holdings. The U.S.-based luxury group, which also owns Michael Kors and Jimmy Choo, purchased Versace in 2018 for €1.8 billion but has since struggled to reposition the iconic Italian brand. Reports suggest Versace could now be valued at around €1.5 billion, a significant discount from its original price.

Prada’s Co-Chief Executive Miuccia Prada added fuel to the speculation last week when she commented that Versace was “on everybody’s table” following Prada’s Fall-Winter 2025-26 collection showcase.

During an analyst conference call, CEO Andrea Guerra remained cautious, stating that Prada’s focus remains on growing its existing brands. However, he also acknowledged that it would be “arrogant” not to explore opportunities, without directly naming Versace.

Challenges of a Potential Deal

While acquiring Versace could strengthen Prada’s portfolio, industry analysts warn of potential risks. Luca Solca, a luxury sector analyst at Bernstein, suggested that Prada “may be getting Versace on the cheap” but cautioned that turning around the brand would require significant investment, management attention, and short-term sacrifices.

Additionally, Prada’s past track record with acquisitions has been mixed, raising concerns about whether it can successfully integrate Versace into its operations.

Looking Ahead

As Capri Holdings struggles to reposition Versace, industry watchers will be closely monitoring Prada’s next moves. While the company remains non-committal, its strong earnings and market position give it the flexibility to make a bold acquisition—one that could reshape the future of both brands in the global luxury landscape.

A new analysis of income tax burdens across Europe has revealed significant disparities in taxation levels, with Nordic countries and Belgium imposing the heaviest rates, while Eastern and Southern European nations generally maintain lower tax burdens.

According to data compiled by Euronews Business using Eurostat figures, the proportion of income tax deducted from gross earnings varies widely depending on location, marital status, number of income earners, and the presence of dependent children.

Single Workers Face Wide Tax Disparities

In 2023, the average single worker without children in the European Union (EU) had an annual gross income of €41,004, with income taxes accounting for 17.3% (€7,075). However, the tax burden ranged significantly across 31 countries, from as low as 3.2% in Cyprus to 36% in Denmark.

Denmark topped the list with an average annual gross salary of €65,506, of which €23,757 was deducted in taxes. In contrast, Cyprus had a much lower average salary of €26,689 but required only €853 in taxes. Other high-tax nations included Iceland and Belgium, both surpassing the 25% threshold, while Ireland, Italy, Finland, Luxembourg, and Norway also recorded rates above 20%.

In contrast, Poland (5.7%), Romania (7%), Bulgaria (8.6%), and Czechia (9%) had some of the lowest tax burdens. Among the EU’s largest economies, Italy’s rate stood at 22.1%, exceeding the EU average, while Germany (17%), France (16.2%), and Spain (15.6%) fell below it.

Switzerland: High Earnings, Low Tax Burden

Switzerland presented an interesting case, reporting the highest average annual gross earnings at €105,105. Despite its high wages, the country maintained a relatively low tax rate of 12.2% (€12,796 in taxes), ranking 22nd overall. Tax Foundation analyst Alex Mengden attributed this to intense competition among local tax jurisdictions within Switzerland.

Couples and Families See Reduced Tax Burdens

For a two-earner couple without children, the average gross annual earnings in the EU amounted to €81,732, with €14,000 (17.1%) paid in income taxes. Again, Denmark had the highest burden (35.5%), while Cyprus maintained the lowest rate at 3.3%.

When children are factored in, tax burdens decrease significantly. A one-earner couple with two children in the EU had an average gross income of €41,043, but paid only €3,311 in taxes, representing an 8.1% rate. Some countries, such as Slovakia (-14.1%), Czechia (-6.5%), Poland (-1.1%), and Germany (-0.2%), even offered negative tax rates, meaning eligible families received refunds instead of paying taxes.

Where Do Taxes Hit the Hardest?

The study confirms that Denmark consistently ranks highest in tax burdens across all household types. Belgium follows closely, ranking in the top three for most categories. Nordic countries generally impose the highest tax rates, while Eastern and Southern European nations tend to have lower tax burdens, often accompanied by strong family-oriented tax incentives.

Germany, Slovakia, and Portugal exhibit some of the largest tax reductions for one-earner families, signaling favorable policies for households with children. As income tax structures continue to evolve, regional trends show a persistent divide between high-tax welfare states and low-tax economies prioritizing wage growth and business-friendly policies.