Italian fashion house Prada reported an acceleration in sales in the second quarter, but warned that the market context will likely remain volatile at a time when the luxury sector seeks to turn the page after years of weak demand.

The group recorded net revenue of 3.05 billion euros, or $3.50 billion, for the first six months of the year. This was 16% higher compared with the same period a year earlier excluding currency movements, and up 5% in organic terms.

For the quarter through June, retail sales climbed 5% on year, despite a greater impact from the war in Iran, the company said Thursday. The growth rate marked an uptick from the 1% increase the group posted in the first quarter.

Prada said that the performance of its namesake brand was solid during the quarter, while the Miu Miu label suffered a more pronounced hit from the conflict in Middle East.