By
Bloomberg
Published
October 1, 2025
Brunello Cucinelli SpA confirmed its target for full-year growth as sales jumped by 11% in the first nine months on continued demand for the company’s luxury cashmere products.
The Italian fashion group rejected claims by a short seller that had led to the steepest drop on record in its shares.
The company said in a statement Wednesday that it’s on track to meet a target of 10% revenue growth this year, releasing figures just days after a report by short seller Morpheus Research alleged it is misleading investors over its Russian division and discounting practices.
Morpheus, which includes alumni of Hindenburg Research, said a three-month investigation it carried out showed that Cucinelli continues to operate stores in Russia even though the company said it had closed them. Sales of luxury goods in Russia have been sanctioned by the European Union since the country’s 2022 invasion of Ukraine. It also claimed that Cucinelli is discounting too heavily to get rid of excess stock.
Cucinelli rejected the claims and said its Russian subsidiary is fully compliant with all regulations. It has said it’s considering legal action to protect its reputation.
“The three direct high-street stores, large flagships that represent the brand’s image in the country, all of which were built or expanded just before the start of the conflict, have always remained closed after sanctions were introduced,” the company said in the statement Wednesday.
Cucinelli shares have recovered since falling 19% in the aftermath of the report by Morpheus.
The revenues generated by its Casa di Moda in Russia, whose relative share was 9.3% in 2021, have declined since the beginning of the conflict, settling at about €30.6 million ($35.9 million) in 2024, or equal to 2.4% of total revenues, the company said in the statement
Italian entrepreneur Brunello Cucinelli founded his eponymous label, where he is still executive chairman and creative director, in 1978 in the country’s central region of Umbria. He made a name for himself with the then-revolutionary idea of dying cashmere and is an advocate of a more “humanistic” form of capitalism.
