European Union antitrust inspectors investigated Gucci’s Milan headquarters this week as part of a multi-country inquiry into Europe’s luxury goods business.
On Tuesday, the European Commission announced that antitrust inspectors had raided fashion companies in multiple EU countries but did not identify the companies or the suspected violations.
On Wednesday, Reuters reported that EU antitrust officials were investigating a Gucci plant as part of the probe.
According to a source, the Gucci site was inspected for probable Article 101 infractions.
The clause forbids agreements restricting, hindering, or distorting EU competition and trade between member states.
Gucci’s Milan headquarters, a former airplane plant in eastern Italy’s fashion city, was the source’s investigation site.
According to Gucci’s website, the Gucci Hub, established in 2016, houses its local offices, worldwide showrooms, photo studios, and fashion show venue.
Gucci’s French-listed owner, Kering (PRTP.PA), acknowledged the inspection late Wednesday and said it complied with the European Commission’s industry probe.
The source said no other Italian locations were inspected.
Kering’s representative indicated Wednesday’s remark was the last. LVMH (LVMH.PA) declined to comment.
In a research note, Exane BNP Paribas analyst Antoine Belge reported that Kering’s investor relations staff provided little new information.
Belge acknowledges that the probe is part of a multi-company investigation and may take time.
“These investigations are not common in luxury,” he added, adding that Kering shares were unlikely to react considerably until other news.
Kering shares fell 0.4% at 1320 GMT Thursday.
EU rulebreakers can be fined 10% of their global revenue.
Equita, an Italian investment firm, estimated that a worst-case 10% revenue penalty would cost Kering 3% of its market cap.
On Tuesday, the Commission claimed the latest raid was unrelated to previous fashion sector raids in the past two years.
