Italian furniture manufacturer Natuzzi has reported consistent sales during its third quarter.
According to its latest trading update ended 30 September 2024, Q3 sales were €75m, in line with 3Q 2023 (+0.1%).
Branded sales were €68.8m, up 0.3% from 3Q 2023. Branded sales were 93.7% of total sales, compared to 93.9% in 3Q 2023. DOS sales were €16.8m, down 1.4% from €17.1m in 3Q 2023.
Operating losses amounted to €3.8m, widening from €1.4m. As part of its transformation, during 3Q 2024, Natuzzi accelerated its restructuring which affected P&L results with (€3.4)m of one-off severance costs. During the quarter 276 staff exited the group.
These exits are mainly due to the closing of our Shanghai plant, whose production was moved to Quanjiao.
Natuzzi did invest €1.7m in Q3, primarily to upgrade its Italian factories and for the dos located in the U.S. and Italy.
Pasquale Natuzzi, executive chairman of the group, commented: “We are living in a dual-speed reality. On one hand, our performance reflects the ongoing challenges posed by the persistent economic crisis. On the other hand, we are seeing growing evidence of the strength of our long-term Brand/Retail project, which continues to gain momentum, paving the conditions to capture the full potential of our Brands.
“On Nov 12, I had the privilege of inaugurating the Natuzzi Harmony Residences, a 110,000-square-feet, 9-floor building with 50 apartments, located in a prestigious area in Dubai. For the first time, we have led the whole architectural and creative direction both for the exterior and interior design, resulting in a project which is a living tribute to our Brand DNA. This initiative is a clear testament that our Brand enjoys global recognition and that we completed our evolution into a lifestyle brand.
“We also continue to innovate and lead where our brand has its origins. In October, at the High Point Market, we unveiled our ‘Re-imagined Gallery’ concept — an innovative format designed to strengthen the coherence of the Natuzzi brand representation and improve commercial performance with our distribution partners. The ‘Re-imagined Gallery’ has since become our global standard for the brand’s presence in multi-brand retailers. Along with our global retail format, it ensures consistent brand representation across markets and channels. Thanks to these efforts, we are increasingly presenting our collection in a unified and inspiring way across our 678 stores and 628 galleries worldwide.
“These results testify that Natuzzi is one of the few global design and high-end furniture brands. They also reinforce my belief that, moving forward, the positive impact of our strategic initiatives will effectively counterbalance market headwinds, positioning us for a prosperous future.”
