Cucinelli Enhances Sanctions Compliance Following Allegations of Breach

Brunello Cucinelli has reinforced its compliance controls regarding EU sanctions on Russia, as detailed in its 2025 annual report. This action follows allegations from U.S. short seller Morpheus Research, which claimed the luxury brand continued selling goods in Russia in violation of these sanctions. The company adopted a 'strengthened trade compliance procedure' on December 10, 2025, after an external law firm's risk assessment. Cucinelli maintains a wholly owned subsidiary in Russia, which contributes less than 2% to its global revenue. The firm has denied any wrongdoing and confirmed its compliance with EU regulations. Despite geopolitical risks, no additional write-downs were recorded for the Russian unit in 2025. The report was approved by shareholders on April 24, 2026.

Key Points: • Cucinelli strengthened trade compliance procedures after sanctions breach allegations. • The company maintains a Russian subsidiary, contributing less than 2% of total revenue. • Morpheus Research's allegations led to a significant stock selloff for Cucinelli.