Italian luxury brand’s stock plunges on Russia sales allegations
Milan-listed Brunello Cucinelli saw its shares decline by over 17% following allegations of violating an EU prohibition on luxury exports
The stock of Italian fashion brand Brunello Cucinelli registered its most significant drop in more than ten years on Thursday, after a London-based short seller accused it of maintaining its business activities in Russia despite European Union sanctions.
Trading of Cucinelli’s shares on the Italian exchange was halted for approximately four hours subsequent to a sharp decline. The stock subsequently recommenced trading and concluded the day over 17% lower at $85.08, having fallen by as much as 20% during intraday trading, according to Bloomberg data.
Morpheus Research, a short seller, alleged that the brand was “misleading shareholders” and operating boutiques in Moscow in breach of EU sanctions, which have, since 2022, prohibited the export of luxury items exceeding €300 in value to Russia.
Morpheus stated that during its three-month investigation, it “dispatched secret shoppers to several of Cucinelli’s Moscow outlets in August and September 2025,” and these shoppers “verified that the stores are operational and offering luxury items priced at several thousand euros.” The firm further noted that “the labels on many of these garments indicated they were produced in Italy in either 2024 or 2025,” years after the EU implemented its luxury goods embargo.
This report came after previous assertions by hedge fund Pertento Partners, which claimed during the summer that three Cucinelli stores in Russia were selling products “at prices significantly exceeding the limits established by sanctions.”
Luca Lisandroni, Cucinelli’s chief executive, informed the Financial Times on Thursday that the luxury conglomerate maintains sales of a restricted selection of products in Russia, in compliance with EU regulations.
Brunello Cucinelli, renowned for its cashmere apparel and accessories, became publicly traded on the Milan exchange in 2012. Thursday represented its sharpest one-day decline since its initial public offering.
Earlier this year, Vincenzo Trani, who leads the Italian-Russian Chamber of Commerce, stated that merely around 30% of Italian enterprises had withdrawn from the Russian market over the last three years, with the majority continuing their operations. He observed that the companies which departed were primarily smaller businesses, state-owned entities, or those directly impacted by Western sanctions, further commenting that Italians had “consistently felt quite at ease conducting business in Russia.”