Brunello Cucinelli’s revenue in Russia plunges to five-year low
Revenue at the Russian subsidiary of Italian fashion house Brunello Cucinelli fell to its lowest level in five years, RBC reported, citing the financial statements of the company's Russian legal entity, OOO Brunello Kuchinelli Rus. The brand has faced allegations in the West of violating sanctions.
The company's revenue fell to 1.2 billion rubles in 2025, the documents show. A year earlier, it stood at 1.5 billion rubles. That is about 25% lower than in 2023, 31% below the 2022 level, and roughly 60% lower than in 2021.
However, the company returned to profit for the first time since 2021. Net profit reached 295 million rubles last year, compared with a loss of 135 million in 2024. In 2023, the Russian subsidiary of the Italian fashion house — known for its cashmere products — reported a loss of 554 million rubles. In 2022, the loss stood at 23 million rubles.
The financial report says that last year the company "continued to face the risk of a business contraction" amid the conflict in Ukraine. Five of the retailer's stores — three in Moscow, one in Krasnogorsk, and one in St. Petersburg — which suspended operations in 2022, remained closed. However, the company has not yet terminated the leases, the documents say. It also maintains several warehouses and an office in central Moscow.
Brunello Cucinelli continued to expand its services to offset the "impact of EU sanctions on Russia", the documents show. The company began allowing customers to choose products from photographs, offered home delivery and cashless payment options, and continued to develop remote sales.
In the fall of 2025, the UK-based Morpheus Research project, which specializes in investigative financial reporting, alleged that Brunello Cucinelli was violating EU sanctions by operating several stores in Moscow. According to its findings, the Italian fashion house's boutiques were selling luxury goods costing several thousand euros, though EU legislation prohibits the supply of products priced above €300 to Russia. The report also pointed out that between 2021 and 2023, Brunello Cucinelli increased its exports to Russia: in volume, they grew by 715%. The authors of the investigation suggested this trend may partly be explained by higher supplies of cheaper goods but noted that the sharp growth seemed unusual given the closure of the company's boutiques in the country.
Brunello Cucinelli explained that the fashion house had decided to maintain its local structure in Russia unchanged and continues to pay its employees and salesmen their full salaries. The company confirmed that its employees provided "support services" in the showroom at the request of end customers. These referred to goods delivered legally in accordance with EU restrictions or remaining stock brought into the country before the sanctions were applied. The company also argued that outlets selling its products continued to operate within large multi-brand stores and emphasized that it complied with the law, working with wholesale partners.
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17.03.26