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

Prada's profits rose 25% to 839 million euro last year, the fashion group said as it is reportedly poised to buy Versace.

Both are world-famous, extremely successful, Italian fashion houses. But in terms of style, they are miles apart. Yet Prada ...