Cucinelli reaffirms that it operates in Russia in line with EU rules

MILAN (Reuters) -Italian luxury company Brunello Cucinelli reaffirmed on Wednesday that it operated in Russia in full compliance with EU regulations, as it posted a 12% increase in revenues in the third quarter, to 336 million euros ($394 million). Shares in the cashmere group have been under pressure after a short-seller last week accused the company of misleading investors about its Russian business, an allegation it has denied. The group said that Russia accounted for 1.4% of its revenues at the end of September, down from 2.7% a year earlier. It added that its inventory is "appropriate and balanced". The group, the first in the European luxury industry to provide an update on the latest quarter, confirmed its expectations for revenues to increase by around 10% in 2025 and 2026. ($1 = 0.8523 euros) (Reporting by Elisa AnzolinEditing by Keith Weir)

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