Finance
Brunello Cucinelli rejects short sellers' report over Russia business
Published by Global Banking and Finance Review
Posted on September 25, 2025
3 min readLast updated: January 21, 2026
Quick Summary
Brunello Cucinelli denies short sellers' claims of ongoing substantial business in Russia, asserting compliance with EU regulations.
Brunello Cucinelli Denies Short Sellers' Claims About Russia Operations
Brunello Cucinelli's Response to Short Selling Claims
ROME (Reuters) -Italian fashion group Brunello Cucinelli on Thursday rejected reports by short sellers that it is still conducting substantial business in Russia, saying its reduced activities in the area are in full compliance with European Union regulations.
Details of the Allegations
Following Russia's invasion of Ukraine in 2022, the EU banned exports of luxury goods worth more than 300 euros ($350.28) to Russia, designed as a blow to the country's elite.
Company's Financial Performance
Earlier on Thursday, financial analysis group Morpheus Research published a report saying it had shorted Cucinelli's Milan-listed shares.
Potential Legal Action
It claimed the company misled investors and keeps operating several stores in Moscow, selling a wide range of high-end clothing and accessories, and still trading with Russian partners despite sanctions.
The fashion company, based in central Italy, said in a statement that staff in its Russian showroom provided customer care services for clients.
Its spaces in larger multi-brand stores are still open and products for sale are those that can be legally shipped to Russia, along with inventory delivered before sanctions were introduced, the group said, without elaborating.
Cucinelli added that inspections by Italy's Customs Agency confirmed full compliance in the procedures but did not say when they took place.
The Morpheus report also alleged that Cucinelli is using the Russian market to get rid of excess inventory but the brand, known for its high-end plush cashmere products, responded that "figures provide a clear and accurate perspective on this matter and rule out any speculation regarding the use of the Russian market to reduce stock or clear excess inventory".
Cucinelli also said the company was considering legal action against Morpheus "to protect its reputation and the interests of all its stakeholders".
The move by Morpheus sent Cucinelli shares down almost 5%, prompting the Italian Bourse to suspend trading in the stock. The shares closed down over 17.3% at 85 euros.
Cucinelli, with almost 1.3 billion euros ($1.52 billion) in revenue at the end of 2024, said the share of Russian sales on its total turnover has fallen by more than two-thirds from 2021 and that the market now accounted for just 2% of its revenue.
Exports to its Russian unit fell to 5 million euros in 2024 from 16 million euros in 2021, it added.
($1 = 0.8558 euros)
(Reporting by Giulia Segreti; Editing by Gavin Jones and Richard Chang)
Key Takeaways
- •Brunello Cucinelli denies claims of substantial business in Russia.
- •The company asserts compliance with EU luxury goods ban.
- •Morpheus Research shorted Cucinelli's shares, alleging misconduct.
- •Cucinelli considers legal action to protect its reputation.
- •Russian sales now account for just 2% of total revenue.
Frequently Asked Questions about Brunello Cucinelli rejects short sellers' report over Russia business
1What did Brunello Cucinelli say about its business in Russia?
Brunello Cucinelli rejected claims that it is still conducting substantial business in Russia, stating that its activities have been significantly reduced since the sanctions.
2What allegations were made by Morpheus Research?
Morpheus Research alleged that Cucinelli misled investors and continued to operate stores in Moscow, selling high-end clothing and accessories despite sanctions.
3How did the Morpheus report affect Cucinelli's stock?
The report caused Cucinelli's shares to drop almost 5%, leading to a suspension of trading on the Italian Bourse, with shares closing down over 17.3%.
4What actions is Cucinelli considering against Morpheus Research?
Cucinelli stated it is considering legal action against Morpheus to protect its reputation and the interests of its stakeholders.
5How have Cucinelli's sales in Russia changed since 2021?
Cucinelli reported that the share of Russian sales in its total turnover has fallen by more than two-thirds since 2021, with exports to its Russian unit dropping significantly.