(Bloomberg) -- Prada SpA defied a luxury industry downturn last year as wealthy young shoppers flocked to products from its Miu Miu brand.

Revenue at the Italian group rose 17% at constant currencies in 2024, the Hong Kong-listed company said Tuesday. Analysts expected a 16.6% increase. Growth remained strong in the fourth quarter, with retail sales climbing 84% at Miu Miu, the company said.

Prada has been outpacing luxury rivals such as Gucci-owner Kering SA and LVMH, buoyed by the allure of Miu Miu’s Arcadie handbags and cashmere cardigans among Gen Z consumers. The group is also nearing a potential acquisition of Versace from Capri Holdings Inc., Bloomberg News has reported, a move that would return the brand founded by the late Gianni Versace to Italian ownership.

Family-controlled Prada and Capri have agreed to a price of as much as €1.5 billion ($1.6 billion), Bloomberg reported Sunday, citing people familiar with the matter. The deal would create a larger Italian player to compete more effectively with rival global luxury groups. Prada may also bid for Capri’s Jimmy Choo, Italian newspaper Corriere della Sera reported.

Prada shares have climbed 14% so far this year in Hong Kong, twice the gain by LVMH Moet Hennessy Louis Vuitton SE, the world’s largest luxury group.

Miuccia Prada, the granddaughter of the group’s founder, is creative director at Miu Miu and splits those duties at Prada with Raf Simons. Prada named Silvia Onofri to lead the Miu Miu label last month after Benedetta Petruzzo left to become managing director of Christian Dior Couture. 

Prada performed well in Asia Pacific, the region that includes China, where retail sales climbed 13% last year. The region accounts for a third of the group’s total revenue. Japan sales surged by 46%, boosted in part by tourists’ purchases. All regions except the Americas rose by double-digits.

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