The Journal Podcast Summary: "Arrivederci, Donatella Versace"
Episode Release Date: March 25, 2025
Hosts: Kate Linebaugh, Ryan Knutson, with Jessica Mendoza
Produced by: The Wall Street Journal & Gimlet, in collaboration with Spotify
Introduction
In the March 25, 2025 episode of The Journal, hosts Kate Linebaugh and Ryan Knutson delve into the significant transition within the iconic Italian fashion house, Versace. Titled "Arrivederci, Donatella Versace," the episode explores Donatella Versace's departure from her long-standing role as the brand's creative director, marking the end of an era for the global luxury brand.
Background: Versace's Legacy
Versace, established in Milan by Gianni Versace in 1978, has been synonymous with bold, dramatic fashion characterized by vibrant prints, luxurious fabrics, and flamboyant designs. Donatella Versace, Gianni's sister, became the creative force behind the brand following Gianni's tragic murder in 1997. Under her leadership, Versace solidified its reputation, crafting iconic looks for celebrities like Madonna, Lady Gaga, and Beyoncé.
Suzanne Kapner, WSJ Fashion Industry Correspondent, highlights:
"Donatella is incredibly central to the Versace brand. She's very recognizable for her platinum blonde hair and her dark eyeliner... you would know her almost as a celebrity."
(06:23)
Acquisition by John Idol and Capri Holdings
In 2018, facing stiff competition from conglomerates like LVMH and Kering, Versace was acquired by John Idol's company, Capri Holdings, for over $2 billion. Idol, known for transforming Michael Kors into a multi-billion dollar entity by democratizing the brand and expanding its market reach, envisioned a similar trajectory for Versace.
John Idol explains:
"Michael Kors is trying to fire up sales by tacking on big name brands like the globally revered Versace."
(10:19)
Initially, Versace executives welcomed the acquisition, anticipating increased resources for expansion and innovation. However, underlying tensions soon emerged between the American business strategies of Capri and the Italian creative ethos of Versace.
Creative Clashes and Strategic Differences
The core of the conflict lay in differing visions for the brand's future. Idol aimed to streamline Versace's offerings, favoring more understated, elegant designs akin to brands like Dior. This approach contrasted sharply with Donatella's penchant for the brand's signature boldness and extravagance.
Suzanne Kapner notes:
"He wanted to make it less Versace more Palm Beach, less South Beach, so to speak. Tone down those bright colors, get rid of those bright prints, make it more like Dior."
(14:57)
Donatella, committed to maintaining Versace's distinctive flair, found herself at odds with Idol's business-driven interventions. Instances such as Idol directing the removal of flamboyant men's silk shorts from store displays exemplified the growing discord.
Kate Linebaugh summarizes:
"Donatella was not pleased, especially because her idea of partnering with John was that he was going to bring his business chops to the partnership, not weigh in on all the creative stuff."
(15:26)
Impact on Versace's Performance
The misalignment between Capri's strategic objectives and Versace's creative direction began to reflect in the brand's performance. The luxury fashion market experienced shifts post-pandemic, with a noticeable decline in sales and a surge in the "quiet luxury" trend—favoring subtle, logo-less designs over flashy attire.
Suzanne Kapner explains:
"Coming out of COVID, two things happened. One, the quiet luxury trend became very popular... And then secondly, luxury industry started to go into a bit of a slump."
(14:02)
Versace's sales plummeted by approximately 20% in the first nine months of the fiscal year, and Capri's stock, since acquiring Versace, had fallen by about 40%. Attempts to merge Capri with Tapestry were blocked by regulators, leaving Idol in pursuit of alternative strategies to revitalize the brand.
Donatella Versace's Departure
Amidst declining sales and escalating creative tensions, Donatella Versace announced her resignation as creative director, effective April 1. Her departure was a culmination of long-standing frustrations over creative autonomy and the direction imposed by Capri's management.
Donatella Versace stated at a Vogue event:
"Being told what to do, being told what's going to sell. If you try to please too many people, too many managers, creativity is gone."
(18:35)
Her exit signifies a profound shift for Versace, as she had been the creative cornerstone of the brand for nearly three decades. Dario Vitale, former design and image director at Miu Miu, will succeed her, signaling a new chapter for Versace without its founding family's direct creative input.
Suzanne Kapner observes:
"Now we are really going to enter a new era for Versace where there is no Versace at the helm."
(18:23)
Future of Versace Under New Leadership
With Idol expressing confidence in his vision for Versace, the brand is poised to undergo a transformation towards more understated luxury. The introduction of a new baroque "V" insignia on handbags indicates a strategic shift, although public reception has been mixed, reflecting ongoing brand identity confusion.
John Idol asserts:
"We recognize that brand evolutions take time and that challenges are inevitable along the path to success."
(19:08)
Suzanne Kapner predicts that Versace will continue to elevate its focus on craftsmanship and elegant designs, moving away from the flamboyant aesthetics that once defined it. However, this shift may alienate long-time enthusiasts while attempting to attract a new, perhaps more subdued clientele.
Conclusion
The departure of Donatella Versace marks a pivotal moment for the brand, symbolizing the complex interplay between creative vision and corporate strategy within the luxury fashion industry. As Versace navigates its post-Donatella era under Capri Holdings' leadership, the fashion world watches to see whether the brand can successfully reinvent itself while retaining its storied legacy.
Ryan Knutson concludes:
"So it sounds like she might have felt a little bit like her hands were tied creatively."
(18:52)
This episode of The Journal offers an insightful exploration of the challenges faced by family-run luxury brands in the modern corporate landscape, highlighting the delicate balance between maintaining brand identity and adapting to evolving market demands.
Notable Quotes:
-
Donatella Versace:
"Being told what to do, being told what's going to sell. If you try to please too many people, too many managers, creativity is gone."
(18:35) -
John Idol:
"Michael Kors is trying to fire up sales by tacking on big name brands like the globally revered Versace."
(10:19) -
Suzanne Kapner:
"Donatella is incredibly central to the Versace brand... you would know her almost as a celebrity."
(06:23)
References: