Shares in Brunello Cucinelli fell as much as 9% in early Friday trade, extending Thursday’s losses after short-seller Morpheus Research accused the company of misleading investors about its Russian business — a claim the company denied.

Shares in the Italian cashmere brand dropped to 77.6 euros, their lowest level since December 2023, before paring losses to trade down 3.5% at 82.1 euros around 8:30 a.m. GMT.

The company had previously been seen as relatively shielded from the current slowdown in the luxury goods sector, thanks to its high-end positioning. However, the stock is now down nearly 50% from its record high in February.

Short interest jumps

Morpheus Research, which said it has shorted the group’s shares, joins other funds betting against Brunello Cucinelli. The stock lost

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