Shares in Moncler and LVMH were sharply higher this morning after the owner of Louis Vuitton and Moet & Chandon champagne invested in the Italian outerwear specialist, in a deal which will give it a seat on the board.
Under the deal announced last night, LVMH purchased a 10% stake in Double R, the investment vehicle controlled by the CEO's Ruffini Partecipazioni Holding, which currently has a 15.8% stake in Moncler.
Moncler shares, which had fallen 6.5% so far this year, were up as high as 10% in early morning trading, set for their best day since January, according to LSEG data.
LVMH, down 7.5% year-to-date, was up 3.3%.
The deal was seen as strengthening the French group LVMH's dominance of the global luxury sector.
"From LVMH's perspective, we view this deal as opportune given current weakness across the luxury sector," said Piral Dadhania, analyst with RBC.
The news came on the day that Reuters reported China planned further stimulus measures, which boosted luxury shares, spurring hopes it will revive spending on high end goods.
Investors have grown jittery about a slowdown in the luxury sector, particularly weakness in the key Chinese market, hit by slowing economic growth and a property crisis.
