Prada (1913.F) reported a 9 per cent increase in first-half net revenues at constant currencies, defying weakness across the luxury sector thanks to rapid growth at its smaller but fast-expanding Miu Miu brand, even as its flagship Prada label lagged behind.

Net revenue at the family-owned group, which is preparing to include Versace in its portfolio, totalled 2.74 billion euros ($3.16 billion), broadly in line with analysts’ expectations, with growth supported by all regions.

Retail sales at the Prada brand fell 3.6 per cent in the second quarter, while sales at Miu Miu surged 40 per cent. The younger brand accounted for a quarter of total group revenues last year.

The group recently parted company with Prada brand CEO Gianfranco D’Attis.

Adjusted operating profit rose 8 per cent to 619 million euros in the first half, slightly below the 636 million euro consensus forecast.

“This healthy performance was achieved against a challenging backdrop, somewhat unprecedented in our industry,” Prada Chairman Patrizio Bertelli said.

“We believe the structural growth opportunities remain unchanged, but we are conscious that in the short term we may continue to face a turbulent economic environment,” he added.

The group reaffirmed it expects to complete the Versace acquisition, agreed in April, in the second half of the year.

Luxury industry recovery has remained elusive. Gucci owner Kering (PRTP.PA) reported a 15 per cent drop in quarterly revenues, while LVMH (LVMH.PA) posted a slightly worse-than-expected 4 per cent decline in quarterly sales. Hermes (HRMS.PA) saw a 9 per cent rise in sales but also showed signs it was not entirely immune to the wider slowdown.