Italian furniture manufacturer Natuzzi has reported a decline in full year sales as its fourth quarter also suffered a reduction in revenues.
According to its latest trading update, total net sales were €318.8 million for the full year 2024, down 3% compared to €328.6 million in 2023.
Branded sales were €287.9 million, compared to €295.9 million. Branded sales were 92.7% of total sales. DOS sales were €76.1 million, up 4.1% from 2023, driven mainly by a 14.6% sales increase from its DOS in the US.
Natuzzi Italia invoiced sales amounted to €120.5 million, compared to €119.3 million in 2023. Natuzzi Editions invoiced sales (including invoiced sales from “Divani&Divani by Natuzzi”) amounted to €167.4 million, compared to €176.6 million in 2023.
Q4 sales fell 10.9% to €74.9 million, a consequence of the planned changes implemented on the industrial front that took place during the last quarter. “This included the closure of the Shanghai plant whose production for the local market has been transferred to the new facility in Quanjiao; the Shanghai plant was no longer strategic for Natuzzi Editions production for the US market,” the group said.
“In 4Q 2024 we also relocated Natuzzi Editions production for the North American market to our European sites. These changes anticipated the introduction of new US import duties and are now proving coherent with the evolving trade framework.”
In 2024, the group closed two non-performing Natuzzi Italia stores, one in Spain and one in Switzerland, and one Divani&Divani by Natuzzi store in Italy, as part of its “ongoing effort to progressively improve the quality of our retail”.
Furthermore, as part of its transformation, in 2024, Natuzzi accelerated its restructuring which affected P&L results with (€5.3) million of one-off severance costs. Gross margin was 36.3%, improving 2pp from 34.3% in 2023, while pre-tax losses amounted at €15.4 million, narrowing from a loss of €16.2 million.
“In 2024, 638 persons exited our group, of which 331 related to the planned closure of our Shanghai factory,” the group said. “These exits were partially offset by hires in strategic areas such as retail, marketing and merchandising.
“We had an operating loss of (€6.3) million, compared to an operating loss of (€9.5) million in 2023. Excluding (€5.3) million of one-off severance costs, we would have reported an operating loss of (€1.0) million.”
During 2024, Natuzzi invested €7.1 million, primarily to upgrade its Italian factories and for the DOS located in the US and Italy.
Pasquale Natuzzi, Executive Chairman of the Group, commented: “2024 — a year that marked the 66th anniversary of our Group — was characterised by a still challenging and volatile market environment. Throughout the year, we remained firmly focused on advancing our brand and retail transformation journey.
“We have made significant progress in retail management, covering both directly operated and franchised stores, as well as our reimagined galleries. We finalised a customer experience model designed to ensure a compelling and commercially effective presentation of our collections. We are now able to manage our retail operations with agility, making fast, data-driven decisions across key areas such as merchandising and team management. What once took weeks can now be analysed and diagnosed at the store level in a matter of hours, thanks to automation and improved analytics.
“At the same time, our marketing has taken important steps to enhance customer engagement in a more targeted and measurable way—another milestone in Natuzzi’s transformation into a truly customer-centric organisation.
“We remain committed to investing in product innovation, digital transformation, and operational excellence. Looking ahead, we are confident in the long-term potential of our strategic vision. We thank our team, partners, customers, and investors for their continued support and trust—as we work together to build a strong foundation for Natuzzi’s future success.”
