"The agreement aims to expand globally the brand founded by Chiara Ferragni in the underwear and beachwear fashion segment, leveraging the structure and experience of Velmar," Aeffe said in a statement.

The Fall/Winter 2021-22 collection will be the first collection resulting from the collaboration, available online and in selected shops and department stores, alongside Chiara Ferragni's boutiques.

By 0906 GMT, Aeffe shares were suspended due to excessive volatility after rising 10% in an otherwise flat Milan bourse.

(Reporting by Maria Pia Quaglia, editing by Agnieszka Flak)