Prada SpA is working with advisers to evaluate the Versace brand as it weighs a bid for the Italian fashion company owned by Capri Holdings Ltd.

Milan-based Prada, a rare standout amid the luxury sector’s recent downturn, has kicked off a full review of Versace after gaining access to its latest financial and sales figures, people familiar with the matter said. 

Prada is evaluating a possible bid, said the people, who requested anonymity while discussing private deliberations, adding that there’s no guarantee the review will lead to a formal offer. Prada declined to comment, and Capri did not respond to a request for comment outside business hours.

A potential buyout by Prada could see Versace, a storied Italian brand, returning to a domestic owner after other big names in the industry being scooped up by global players.

French conglomerate LVMH owns a string of Italian brands, including Fendi and Loro Piana, and it recently bought a stake in the company that controls Moncler SpA.

The LVMH-backed fund L Catterton played a central role in taking shoemaker Tod’s SpA private, while Kering SA owns Gucci and Bottega Veneta and has an option to gain control of Valentino.

Family-owned Prada, whose shares are listed in Hong Kong, has emerged as one of the winners amid a global luxury sector downturn. Its sales surged in the third quarter of last year on the back of its Miu Miu brand, a hot commodity for younger consumers.

Italian media earlier reported that Capri, whose portfolio also includes Michael Kors, has hired Barclays Plc to explore options for some of its controlled companies after a $8.5 billion combination attempt with Tapestry Inc. was scrapped following a court order.

The Italian website, The Platform, reported this week that Prada had signed an exclusive agreement to conduct due diligence on Versace, citing market sources and social media accounts.

–With assistance from Pamela Barbaglia and Daniele Lepido.

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