Luxury fashion conglomerate LVMH has taken a minority stake in New York-based luxury label Gabriela Hearst. The terms of the deal were not disclosed, but it is thought LVMH Luxury Ventures invested somewhere between €2 million and €15 million.

It is thought that news of the investment could have an overall positive effect on the American fashion industry, which has struggled with establishing US-based luxury brands that can compete with its European counterparts, in terms of positioning, quality and retail distribution.