Fashion name Gucci, part of French luxury goods group Kering, revealed that its Italian offices had been raided by police over allegations of tax evasion.
The revelation closely followed reports in the Italian press that prosecutors in Milan were investigating irregularities.
Daily newspaper La Stampa reported that Gucci was alleged to have been paying taxes on Italian sales in Switzerland so as to lessen its tax bill.
“Gucci confirms that it is providing its full cooperation to the respective authorities and is confident about the correctness and transparency of its operations,” said the company in a statement.
Kering has been one of the stars of the European stock market this year as the company has benefited from a revival in sales of luxury branded goods, especially to Chinese buyers.
Shares were virtually unchanged as at 1030 GMT, trading at 373.85, just 0.04% lower on the session.