Talks of consolidation in the luxury sector are growing after it was revealed that Louis Vuitton Moet Hennessy (EPA:MC) owner Bernard Arnault has built a stake in Cartier owner Richemont.
Europe's richest man is believed to have purchased a stake too small to be disclosed in public records and is a personal investment, reports from the Financial Times revealed.
Swiss-based Richemont has been rumoured as a takeover target for luxury companies, especially as it readies for a succession challenge with its owner and chair Johann Rupert set to retire.
In April, LVMH reported a soft start to 2024, let down by jewellery, spirits and champagne, though not as bad a quarter as many investors had expected.
Shares in Paris-listed LVMH were unchanged in trading today, while Richemont, trading in Switzerland, dropped close to 1%.
Total organic sales of €20.7 billion were up 3% on a year ago, in line with consensus analyst forecasts.
Shares in London-listed Burberry rose 1%.