Milan-listed Brunello Cucinelli shed more than 17% after accusations it breached an EU ban on luxury exports
Shares of Italian fashion house Brunello Cucinelli experienced their steepest slump in over a decade on Thursday following accusations by a London-based short seller that it has continued operations in Russia despite European Union sanctions.
Trading in Cucinelli was suspended on the Italian exchange for about four hours after a steep drop. The stock later resumed trade and closed down more than 17% at $85.08, after plunging as much as 20% intraday, Bloomberg data shows.
Short seller Morpheus Research accused the brand of “misleading shareholders” and running Moscow boutiques in violation of EU sanctions, which since 2022 have banned exports to Russia of luxury goods worth over €300.
Morpheus said that during its three-month probe it “sent secret shoppers to some of Cucinelli’s Moscow stores in August and September 2025” who “confirmed that the stores are open and selling multi-thousand-euro luxury goods.” The firm added that “the tags on many of these garments reveal that they had been manufactured in Italy in either 2024 or 2025,” years after the EU imposed its luxury-goods ban.
The report followed earlier claims by hedge fund Pertento Partners, which alleged in the summer that three Russian Cucinelli stores were selling items “at prices several times above the limits set by sanctions.”
Cucinelli’s chief executive Luca Lisandroni told Financial Times on Thursday that the luxury group continues to sell a limited range of items in Russia in line with EU regulations.
Brunello Cucinelli, known for its cashmere clothing and accessories, listed on the Milan exchange in 2012. Thursday marked its steepest single-day drop since the initial public offering.
Earlier this year Vincenzo Trani, the head of the Italian-Russian Chamber of Commerce, said only about 30% of Italian companies had left the Russian market in the past three years, while most continued operating. He noted that those who exited were mainly smaller firms, state-owned enterprises or businesses hit directly by Western sanctions, adding that Italians had “always felt quite comfortable doing business in Russia.”
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