Italy's Cucinelli extends losses after short seller report

Brunello Cucinelli SpA

26/09/2025 10:10

** Shares in Italy's Brunello Cucinelli BCU.MI extend Thursday's losses after a report by short seller Morpheus Research over the company's Russia business

** Stock down over 5% at 0900 GMT; suspended several times for volatility and down as much as 9% in early trade

** Cucinelli rejected the report that it is still conducting substantial business in Russia, saying its reduced activities in the area are in full compliance with European Union regulations

** Its shares dropped 17% on Thursday - their biggest one-day drop ever

** "The market still wants clarity on the Russia issue from the company, which risks losing credibility," a local trader says

** Brokerage Equita notes that "potentially most troublesome element" in the report is "the allegation that Brunello Cucinelli circumvented the EU import limits in Russia"

** Still, Equita says the report was at times "biased and unfounded"

** It adds that some other issues brought up in the report, such as Cucinelli's high inventory or its products being discounted at third-party retailers, are well known to the market or the company's common practice

 (Reporting by Philippe Leroy Beaulieu, Andrea Mandala)

 ((Philippe.leroybeaulieu@thomsonreuters.com))